Investors are given the option accepting calls on bonds with call features.

A tax burden falls more heavily on the side of the market that is less elastic.

The size and nature of a firm's investment in current assets is a function of a number of different factors including all of the following except:

A) how efficiently the firm manages its fixed assets.
B) the length of the cash conversion.
C) the sales level.
D) credit policies.

Collecting too much secondary information is one of the major deterrents to good report writing.

The ratio of EBIT to interest expenses is known as the:

A) quick-ratio.
B) debt-to-assets ratio.
C) debt-to-equity ratio.
D) times interest earned.
E) None of the above

Suppose a particular investment earns an arithmetic return of 10% in year 1, 20% in year 2, and 30% in year 3. The geometric average return for the period will be

A) greater than the arithmetic average return.
B) equal to the arithmetic average return.
C) less than the arithmetic average return.
D) equal to the market return.
E) It cannot be determind from the information given.