Exam2 FIN370 Winter 2009 Key
Version B
1. A common-size income statement:
I. expresses all values as a percent of total assets.
II. should reflect a relatively constant cost of goods sold unless a firm changed the percent that it uses to mark
up the wholesale price to get the retail price.
III. expresses net income as 100 percent.
IV. can be used to compare the performance of a firm both over time and against its industry.
a. II, III, and IV only
b. I and III only
c. III and IV only
D. II and IV only
e. I, II, and III only
BLOOMS TAXONOMY QUESTION TYPE: APPLICATION
LEARNING OBJECTIVE NUMBER: 1
LEVEL OF DIFFICULTY: INTERMEDIATE
Ross - Chapter 003 #8
SECTION: 3.1
TOPIC: COMMON-SIZE STATEMENT
TYPE: CONCEPTS
2. The condominium at the beach that you want to buy costs $249,500. You plan to make a cash down payment
of 20 percent and finance the balance over 10 years at 6.75 percent. What will be the amount of your monthly
mortgage payment?
A. $2,291.89
b. $3,412.67
c. $3,287.46
d. $4,145.68
e. $2,809.10
BLOOMS TAXONOMY QUESTION TYPE: APPLICATION
LEARNING OBJECTIVE NUMBER: 1
LEVEL OF DIFFICULTY: INTERMEDIATE
Ross - Chapter 005 #45
SECTION: 5.2
TOPIC: ANNUITY PAYMENT
TYPE: PROBLEMS
