Author Question: A college received a contribution to its endowment fund of 2 million. They can never touch the ... (Read 147 times)

pane00

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A college received a contribution to its endowment fund of 2 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 9.5 percent, how much can the college earn to help its operations each year?
 
  A) 95,000
  B) 19,000
  C) 190,000
  D) 18,000
  E) 9,500

Question 2

Discretionary financing needs will be higher if ________. Assume all else equal.
 
  A) sales decline B) excess capacity exists for fixed assets
  C) the dividend payout ratio is raised D) the firm's net profit margin increases



soda0602

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Answer to Question 1

C

Answer to Question 2

C



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