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Engineering Economics

Engineering Economics
The financial health of the company is measured in terms of:

Liquidity
Solvency
Relative risk
All of these

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Engineering Economics
A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond.

P 1,122.70
P 1,144.81
P 1,133.78
P 1,155.06

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Engineering Economics
Aside from many sellers and many buyers, which one is a characteristic of perfect competition?

Free market entry and exit
All of these
Homogeneous product
Perfect information and absence of all economic friction

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Engineering Economics
What is the type of annuity where the payments are made at the beginning of the each period starting from the first period?

Perpetuity
Deferred annuity
Annuity due
Ordinary annuity

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Engineering Economics
What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?

Franchise value
Fair value
Book value
Market value

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Engineering Economics
What bond whose security is a mortgage on certain specified assets of the corporation?

Mortgage bond
Collateral trust bond
Debenture bond
Registered bond

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