Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance. His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan. What is his net worth?
A) $21,000
B) $15,000
C) $6,000
D) Doug is currently insolvent with $6,000 negative net worth.
E) None of the above statements are correct.
Answer: D
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On a particular day, a mining company reveals that, due to new extraction technology, the extractable yield from several of its nickel/lead mines has risen by 15%. Which of the following is the LEAST likely consequence of such an announcement?
A) The price of the stock would rise. B) Investors would determine that the estimates of the firm's value on the date prior to the announcement were too high. C) Investors would increase their forecast of future cash flows in that firm. D) Investors would revise their estimates of the net present value (NPV) of the firm.
Informal techniques for gathering insights and focusing your research efforts do NOT include
A) listening to the community. B) asking the audience for input. C) distributing questionnaires and surveys. D) reviewing reports and other company documents.