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Engineering Economics

Engineering Economics
What is an index of short-term paying ability?

Profit margin ratio
Current ratio
Gross margin
Price-earnings ratio

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Engineering Economics
What type of bond where the corporation’s owner name are recorded and the interest is paid periodically to the owners with their asking for it?

Preferred bond
Callable bond
Registered bond
Incorporators bond

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Engineering Economics
The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or the British pound) is known as ______.

Currency depreciation
Currency float
Currency appreciation
Currency devaluation

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Engineering Economics
What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled?

Incorporator stock
Preferred stock
Authorized capital stock
Common stock

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Engineering Economics
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

0.1207
0.1267
0.1287
0.1234

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Engineering Economics
What is the increase in the money value of a capital asset is called?

Capital expenditure
Profit
Capital gain
Capital stock

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