TAMU FINC 341 EXAM 1 GUYTON QUESTIONS &
ANSWERS
Current head of the federal reserve: - Answers - Jay Powell
Current unemployment rate - Answers - 3.9%
An inflation rate under ____ means we're ____ - Answers - 4%, fully employed
"Loading the gun" means: - Answers - the fed bringing interest rates up
"Firing the gun" means: - Answers - the fed is bringing interest rates down
The current short term treasury rate is ____ - Answers - 1.75%
Recently, the NASDAQ went over ____ - Answers - 8000
The number one goal of management is to: - Answers - Maximize the company stock
price
The current U.S. GDP is: - Answers - 4.27%
An inverted yield curve is indicated by: - Answers - 1-year treasuries are higher than 10-
year
Short term are higher than long term investments
When inflation is equal to unemployment: - Answers - We typically see a recession
The fed controls what type of interest rates? - Answers - 1-year short term rates
The market price of stock is: - Answers - what you would pay for a stock in the market
right now
The intrinsic value of stock is: - Answers - what a stock is worth based on all publicly
available information
The _________ theory states that the stock market always tries to be in ______
meaning stocks approach _______ - Answers - Efficient markets theory
Equillibrium
Their intrinsic value
, In a business relationship, stockholders are the _____ and managers are an ______ -
Answers - Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the
company _____ - Answers - Carl Icahn
Apple
______, or less politically correct, _______ are people who take over companies with
high potential but low performance - Answers - Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" - Answers - EBIT, because
it is the income the company earns if it didn't have to pay taxes or interest on its debt
Which 2 companies currently have a $1 trillion market share? - Answers - Apple and
Amazon
What term refers to when your money is worth less, but your taxes continue to get
higher? - Answers - Bracket Creep
Trump has recently removed the disadvantageous _____ from the tax code - Answers -
Marriage rules
What are the different brackets for taxes on capital gains? - Answers - 0% for the first 3
brackets
15% for everything in between
20% for the last possible bracket
Examples of capital assets are____ and is defined as: - Answers - Stocks, Bonds, and
Real Estate
Things with a useful life of longer than 1 year that are not intended for sale, nor are they
required or aid in normal business operations. They are simply investments.
A tax bracket that has the same tax rate as the average tax rate of the previous
brackets is referred to as a ______ - Answers - maintenance bracket
What is the difference between EVA and Net Income - Answers - EVA considers the
cost of assets that are financed by equity, whereas Net Income only considers debt.
ANSWERS
Current head of the federal reserve: - Answers - Jay Powell
Current unemployment rate - Answers - 3.9%
An inflation rate under ____ means we're ____ - Answers - 4%, fully employed
"Loading the gun" means: - Answers - the fed bringing interest rates up
"Firing the gun" means: - Answers - the fed is bringing interest rates down
The current short term treasury rate is ____ - Answers - 1.75%
Recently, the NASDAQ went over ____ - Answers - 8000
The number one goal of management is to: - Answers - Maximize the company stock
price
The current U.S. GDP is: - Answers - 4.27%
An inverted yield curve is indicated by: - Answers - 1-year treasuries are higher than 10-
year
Short term are higher than long term investments
When inflation is equal to unemployment: - Answers - We typically see a recession
The fed controls what type of interest rates? - Answers - 1-year short term rates
The market price of stock is: - Answers - what you would pay for a stock in the market
right now
The intrinsic value of stock is: - Answers - what a stock is worth based on all publicly
available information
The _________ theory states that the stock market always tries to be in ______
meaning stocks approach _______ - Answers - Efficient markets theory
Equillibrium
Their intrinsic value
, In a business relationship, stockholders are the _____ and managers are an ______ -
Answers - Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the
company _____ - Answers - Carl Icahn
Apple
______, or less politically correct, _______ are people who take over companies with
high potential but low performance - Answers - Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" - Answers - EBIT, because
it is the income the company earns if it didn't have to pay taxes or interest on its debt
Which 2 companies currently have a $1 trillion market share? - Answers - Apple and
Amazon
What term refers to when your money is worth less, but your taxes continue to get
higher? - Answers - Bracket Creep
Trump has recently removed the disadvantageous _____ from the tax code - Answers -
Marriage rules
What are the different brackets for taxes on capital gains? - Answers - 0% for the first 3
brackets
15% for everything in between
20% for the last possible bracket
Examples of capital assets are____ and is defined as: - Answers - Stocks, Bonds, and
Real Estate
Things with a useful life of longer than 1 year that are not intended for sale, nor are they
required or aid in normal business operations. They are simply investments.
A tax bracket that has the same tax rate as the average tax rate of the previous
brackets is referred to as a ______ - Answers - maintenance bracket
What is the difference between EVA and Net Income - Answers - EVA considers the
cost of assets that are financed by equity, whereas Net Income only considers debt.
