Managing a firm's cash outflows through use of a zero balance ...

[lbcchick]

Managing a firm's cash outflows through use of a zero balance account system offers all but
  which of the following benefits?
 
  A) reduction of excess balances in outlying accounts
  B) higher rate of return on invested funds
  C) centralized control over disbursements
  D) reduction of management time spent on superficial cash management activities

Question 2

Consider trying to value a company called Etail.com on January 1. It pays dividends annually on Dec. 31. Yesterday's dividend was 1.
 
  Dividends are expected to grow for the next 2 years at 10 and then settle down to a long-run growth rate of 5 in perpetuity. Because of the initial riskiness of the company, investors required a 20 rate of return over the first 2 years, but only a 12 rate of return thereafter. What is the fair price for the stock today, January 1?
  A) 13.76
  B) 36.77
  C) 14.36
  D) 12.75
  E) 14.96

Question 3

What is the EAR if the APR is 10.52 and compounding is daily?
 
  A) Slightly above 10.09
  B) Slightly below 11.09
  C) Slightly above 11.09
  D) Over 11.25

[ApricotDream]

Answer to Question 1

B

Answer to Question 2

Saved me massive time.

Answer to Question 3

Answer: C
Explanation: C) Using the EAR formula, we get 11.0916 or slightly above 11.09.
EAR = (1 + APR/m)m -1 = (1 + 0.1052/365)365 -1 = 11.0916.