Business professionals typically need to demonstrate a core set of financial knowledge to earn the job and to succeed on a job. For this part of the assessment, you will be given a scenario in which you are asked to illustrate your financial management knowledge.

This part of the final project addresses the following course outcomes:

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements

Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments

Part I Prompt

You have completed an internship in the finance division of a fast-growing information technology corporation. Your boss, the financial manager, is considering hiring you for a full-time job. He first wants to evaluate your financial knowledge and has provided you with a short examination. When composing your answers to this employment examination, ensure that they are cohesive and read like a short essay.

Your submission must address the following critical elements:

Analyze Roles and Responsibilities for Compliance

Examine the types of decisions financial managers make. How are these decisions related to the primary objective of financial managers?

Analyze the various ethical issues a financial manager could potentially face and how these could be handled.

Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these consideredappropriate safeguards?

Investment Options

If a private company is “going public,” what does this mean, and how would the company do this? What are the advantages of doing this? Do you see any disadvantages? If so, what are they?

How do the largest U.S. stock markets differ? Out of those choices, which would be the smartest private investment option, in your opinion? Why?
Compare and contrast the various investment products that are available and the types of institutions that sell them.

Final Project Part I Rubric

Guidelines for Submission: Ensure that your employment examination is submitted as one comprehensive and cohesive short essay. It should use doublespacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.

Critical Elements

Exemplary (100%)

Proficient (85%)

Needs Improvement (55%)

Not Evident (0%)

Value

Roles and

Meets “Proficient” criteria and

Comprehensively examines the

Examines the types of decisions

Does not examine the types of

15.83

Responsibilities:

includes examples in analysis

types of decisions financial

financial managers make,

decisions financial managers

Examine

managers make, including how

including how these decisions are

make

these decisions are related to

related to their primary objective,

their primary objective

but examination is not

comprehensive

Roles and

Meets “Proficient” criteria, and

Comprehensively analyzes the

Analyzes the various ethical issues

Does not analyze the various

15.83

Responsibilities:

analysis indicates a clear

various ethical issues a financial

a financial manager could

ethical issues a financial manager

Analyze

understanding of ethical

manager could potentially face

potentially face and how these

could potentially face and how

standards in finance

and how these issues could be

issues could be handled, but

these issues could be handled

handled

analysis is not comprehensive

Roles and

Meets “Proficient” criteria, and

Accurately analyzes different

Analyzes different federal

Does not analyze different federal

15.83

Responsibilities:

analysis indicates a clear

federal safeguards that are in

safeguards that are in place to

safeguards

Compare and Contrast

understanding of federal

place to reduce financial

reduce financial reporting abuse,

safeguards in finance

reporting abuse, including why

but analysis is inaccurate or

these safeguards are appropriate

cursory, or analysis of why these

safeguards are appropriate is

inaccurate or cursory

Investment: Private

Meets “Proficient” criteria and

Comprehensively compares and

Compares and contrasts the

Does not compare and contrast

15.83

Company

includes examples in analysis

contrasts the advantages and

advantages and disadvantages of

the advantages and

disadvantages of a company

a company “going public” versus

disadvantages of a company

“going public” versus staying

staying private, but analysis is not

“going public” versus staying

private

comprehensive

private

Investment: U.S. Stock

Meets “Proficient” criteria and

Comprehensively and accurately

Differentiates between the

Does not differentiate between

15.83

Markets

explains choice of smartest stock

differentiates between the largest

largest U.S. stock markets, but

the largest U.S. stock markets

market to invest private money

U.S. stock markets and indicates

analysis is inaccurate or cursory

into

choice of smartest stock market

or is missing choice of smartest

to invest private money into

stock market to invest private

money into

Investment: Compare

Meets “Proficient” criteria and

Comprehensively compares and

Compares and contrasts the

Does not compare and contrast

15.83

and Contrast

includes both foreign and

contrasts the various investment

various investment products and

the various investment products

domestic institutions

products available and the types

the types of institutions that sell

and the types of institutions that

of institutions that sell them

them, but analysis is not

sell them

comprehensive

Articulation of

Submission is free of errors

Submission has no major errors

Submission has major errors

Submission has critical errors

5.02

Response

related to citations, grammar,

related to citations, grammar,

related to citations, grammar,

related to citations, grammar,

spelling, syntax, and organization

spelling, syntax, or organization

spelling, syntax, or organization

spelling, syntax, or organization

and is presented in a professional

that negatively impact readability

that prevent understanding of

and easy to read format

and articulation of main ideas

ideas

Earned Total

100%

Final Project Part II

Part II Overview

For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial computation and analysis skills.

This part of the assessment addresses the following course outcomes:

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success
Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part II Prompt

For this section of your employment exam, you will select two companies. The first company needs to come from your TDAU thinkorswim portfolio. The second needs to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies’ financial data, you will then decide which company’s stock is the better investment.

This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation—for example, “rate of return is 3.570 USD (E64, WB2),” where E64 is the cell that the calculation took place in and WB2 is designating “workbook 2.” This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations.

Your submission must address the following critical elements:

Preparing the Workbooks

Download the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for your chosencompanies. This information must be included in your final submission.

Prepare a worksheet for each of the companies to display their financial data for the last three fiscal years. Ensure your data is accurate and organized. Include these worksheets as a workbook in your final submission.

Find historical stock prices for both companies and add this information to the respective spreadsheets. Consider the appropriate date range you should use.

Three-Year Returns

What is the three-year return on the stock price of the first company (Company A)? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company’s stock price.

What is the three-year return on the stock price of the second company (Company B)? How is this stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company’s stock price.
How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies?

Financial Calculations

Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return on assets for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

IV. Industry Averages

Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data.

In this context, how is each company’s financial health? How do these two companies compare to one another? Consider the appropriate date range you should use.
Performance Over Time

Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier.

VI. Investment

Are the companies considered growth or value companies? Why?
Which company’s stock is the better investment? Consider supporting your answer with data.

Final Project Part II Rubric

Guidelines for Submission: This part of the final project will be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data andformulas, along with any of the information that is relevant for your chosen company. Part B will contain your answers to the prompts, composed in a cohesive manner. Part B should use double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.

Critical Elements

Exemplary

Proficient

Needs Improvement

Not Evident

Value

Preparing: Download

Downloads and includes annual

Downloads and includes annual income

Does not download and include

2

income statements, balance

statements, balance sheets, and cash

annual income statements,

sheets, and cash flow

flow statements for chosen companies

balance sheets, and cash flow

statements for the last three

but is missing various components

statements for the last three

fiscal years for chosen

(55%)

fiscal years for chosen

companies (100%)

companies (0%)

Preparing: Worksheet

Prepares worksheet for chosen

Prepares worksheet for chosen and

Does not prepare worksheets

2

and given companies,

given companies, displaying financial

for both the chosen and given

displaying all financial data for

data for the last three fiscal years, but

companies (0%)

the last three fiscal years in an

worksheets are unorganized, inaccurate,

accurate and organized manner

or incomplete (55%)

(100%)

Preparing: Stock Prices

Adds historical stock prices for

Adds historical stock prices for the

Does not add historical stock

2

an appropriate date range for

chosen and given companies, but data

prices for the given and chosen

the chosen and given

has been inaccurately entered or is not

companies to their respective

companies to their respective

for an appropriate date range (55%)

worksheets (0%)

worksheets (100%)

Returns: Company A

Meets “Proficient” criteria and

Correctly calculates the three-

Calculates the three-year return on the

Does not calculate the three-

5.63

logically explains reasoning

year return on the stock price

stock price of the given company, but

year return on the stock price of

behind indication of stock

of the given company and

calculation is incorrect or indication of

the given company (0%)

performance (100%)

accurately indicates how this

how this stock is performing is

stock is performing (85%)

inaccurate or missing (55%)

Returns: Company B

Meets “Proficient” criteria and

Correctly calculates the three-

Calculates the three-year return on the

Does not calculate the three-

5.63

logically explains reasoning

year return on the stock price

stock price of the chosen company, but

year return on the stock price of

behind indication of stock

of the chosen company and

calculation is incorrect or indication of

the chosen company (0%)

performance (100%)

accurately indicates how this

how this stock is performing is

stock is performing (85%)

inaccurate or missing (55%)

Returns: Compare

Meets “Proficient” criteria, and

Compares the three-year

Compares the three-year returns of the

Does not compare the three-

6.43

explanation demonstrates

returns of the given and chosen

given and chosen companies, but

year returns of the given and

nuanced understanding of

companies, explaining what

explanation of what this indicates about

chosen companies (0%)

three-year returns and their

this indicates about each

each company is cursory or missing

implications (100%)

company (85%)

(55%)

Calculations: Price-to-

Correctly calculates the price-

Calculates the price-to-earnings ratios of

Does not calculate the price-to-

5.63

Earnings Ratios

to-earnings ratios for the last

the given and chosen companies, but

earnings ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Debt-to-

Correctly calculates the debt-

Calculates the debt-to-equity ratios of

Does not calculate the debt-to-

5.63

Equity Ratios

to-equity ratios for the last

the given and chosen companies, but

equity ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Return-

Correctly calculates the return-

Calculates the return-on-equity ratios of

Does not calculate the return-

5.63

on-Equity Ratios

on-equity ratios for the last

the given and chosen companies, but

on-equity ratios of the given and

three fiscal years of the given

calculations are incorrect or do not

chosen companies (0%)

and chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Return on

Correctly calculates the return

Calculates the return on assets of the

Does not calculate the return on

5.63

Assets

on assets for the last three

given and chosen companies, but

assets ratios of the given and

fiscal years of the given and

calculations are incorrect or do not

chosen companies (0%)

chosen companies (100%)

consider the last three fiscal years (55%)

Calculations: Profit

Correctly calculates the profit

Calculates the profit margins of the

Does not calculate the profit

5.63

Margins

margins for the last three fiscal

given and chosen companies, but

margins of the given and chosen

years of the given and chosen

calculations are incorrect or do not

companies (0%)

companies (100%)

consider the last three fiscal years (55%)

Calculations: Free Cash

Correctly calculates the free

Calculates the free cash flows of the

Does not calculate the free cash

5.63

Flows

cash flows for the last three

given and chosen companies, but

flows of the given and chosen

fiscal years of the given and

calculations are incorrect or do not

companies (0%)

chosen companies (100%)

consider the last three fiscal years (55%)

Industry Averages:

Adds current industry averages

Adds current industry averages for

Does not add current industry

2

Industry Averages

for chosen and given

chosen and given companies to

averages for chosen and given

companies to worksheet in an

worksheets, but some data is

companies to worksheets (0%)

accurate and organized manner

inaccurate, unorganized, or missing

(100%)

(55%)

Industry Averages:

Meets “Proficient” criteria and

Analyzes the given and chosen

Analyzes the given and chosen

Does not analyze the given and

6.43

Financial Health

includes current industry

companies’ financial health by

companies’ financial health by

chosen companies’ financial

averages within an appropriate

comparing the two companies’

comparing the two companies’ industry

health (0%)

date range (100%)

current industry averages

averages but does not consider the

(85%)

current industry rates (55%)

Performance: Company

Meets “Proficient” criteria and

Comprehensively analyzes the

Analyzes the strengths and weaknesses

Does not analyze the strengths

6.43

A

references free cash flow and

strengths and weaknesses of

of the given company over time, but

and weaknesses of the given

ratios calculated for the given

the given company over time

analysis is not comprehensive (55%)

company over time (0%)

company in analysis (100%)

(85%)

Performance: Company

Meets “Proficient” criteria and

Comprehensively analyzes the

Analyzes the strengths and weaknesses

Does not analyze the strengths

6.43

B

references free cash flow and

strengths and weaknesses of

of the chosen company over time, but

and weaknesses of the chosen

ratios calculated for the chosen

the chosen company over time

analysis is not comprehensive (55%)

company over time (0%)

company in analysis (100%)

(85%)

Performance: Differ

Meets “Proficient” criteria and

Accurately contrasts the

Contrasts the performances of the given

Does not contrast the

6.43

references the companies’ free

performances of the given and

and chosen companies over time, but

performances of the given and

cash flows and ratios calculated

chosen companies over time,

analysis is inaccurate or cursory, or the

chosen companies over time

in analysis (100%)

including a logical, proposed

included explanation of these

(0%)

explanation of these

performances is illogical or cursory

performances (85%)

(55%)

Investment: Growth or

Meets “Proficient” criteria and

Comprehensively analyzes

Analyzes whether the companies are

Does not analyze whether the

6.43

Value

includes quantitative data to

whether the companies are

considered growth or value companies,

companies are considered

support analysis (100%)

considered growth or value

but analysis is not comprehensive, or

growth or value companies (0%)

companies, including a logical

the explanation included is illogical or

explanation of why (85%)

cursory (55%)

Investment: Stock

Meets “Proficient” criteria and

Analyzes each company’s stock,

Analyzes each company’s stock,

Does not analyze each

6.43

includes quantitative data to

including a logical explanation

including an explanation of personal

company’s stock (0%)

support analysis (100%)

of personal preference of

preference of stock options, but analysis

which stock to purchase (85%)

or explanation is illogical or cursory

(55%)

Articulation of

Submission is free of errors

Submission has no major errors

Submission has major errors related to

Submission has critical errors

1.95

Response

related to citations, grammar,

related to citations, grammar,

citations, grammar, spelling, syntax, or

related to citations, grammar,

spelling, syntax, and

spelling, syntax, or organization

organization that negatively impact

spelling, syntax, or organization

organization and is presented in

(85%)

readability and articulation of main

that prevent understanding of

a professional and easy to read

ideas (55%)

ideas (0%)

format (100%)

Earned Total

100%

Final Project Part III

Part III Overview

To make corporate finance decisions, take an advanced finance course, or pursue a career in finance, you will need to understand basic concepts. This includes going beyond the number crunching and reading graphs in order to analyze various financial indicators. This analysis can lead to many important decisions in your financial career. For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial knowledge and analysis skills.

This part of the assessment addresses the following course outcomes:

Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements

Differentiate between various financial markets and institutions by comparing and contrasting options when selecting appropriate private and corporate investments

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success
Analyze corporate financial data for multiple companies in evaluating past and future financial performances

Part III Prompt

The results of both sections of your employment examination have finally been received, and you were offered the position. You have a few important decisions to make before you can formally accept or decline the position. When composing your answers to these decisions, ensure that they are cohesive and read like a short essay.

Your submission must address the following critical elements:

School Versus Work

The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision.

What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers.

Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data.

Bonus Versus Stock

The company has offered you a $5,000 bonus, which you may receive today, or 100 shares of the company’s stock, which has a current stock price of $50 per share. Mathematically, what is the best choice? Why?
What are the advantages and disadvantages of each option? Be sure to support your answers.

What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

Compliance

While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder? Be sure to reference any applicable statutes or laws.

You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?

Final Project Part III Rubric

Guidelines for Submission: Please ensure that your decision plan is submitted as one comprehensive and cohesive short essay. It should use double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.

Critical Elements

Exemplary

Proficient

Needs Improvement

Not Evident

Value

School Versus Work:

Accurately calculates the worth

Calculates the worth of stocks,

Does not calculate the worth of

11.88

Finance Your Education

of stocks, bonds, and

bonds, and combinations of

stocks, bonds, and combinations

combinations of stocks and

stocks and bonds, but calculation

of stocks and bonds (0%)

bonds, including the appropriate

is inaccurate or appropriate data

data and calculations with

and/or calculations are not

submission (100%)

included in submission (55%)

School Versus Work:

Meets “Proficient” criteria and

Comprehensively differentiates

Differentiates the advantages and

Does not differentiate the

11.88

Advantages and

provides historical data, as well

the advantages and

disadvantages of selling a

advantages and disadvantages of

Disadvantages

as quantitative data, to support

disadvantages of selling a

combination of stocks and

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

PART 1

Question 1

The current price of a stock is $22, and at the end of one year its price will be either $27 or $17. The annual risk-free rate is 6.0%, based on daily compounding. A 1-year call option on the stock, with an exercise price of $22, is available. Based on the binomial model, what is the option’s value? (Hint: Use daily compounding.)

$2.43

$2.70

$2.99

$3.29

$3.62

Payoff range: 27 – 17 = 10

Question 2

Suppose you believe that Florio Company’s stock price is going to decline from its current level of $82.50 sometime during the next 5 months. For $5.10 you could buy a 5-month put option giving you the right to sell 1 share at a price of $85 per share. If you bought this option for $5.10 and Florio’s stock price actually dropped to $60, what would your pre-tax net profit be?

-$5.10

$19.90

$20.90

$22.50

$27.60

Question 3

Which of the following statements is CORRECT?

Call options generally sell at a price greater than their exercise value, and the greater the exercise value, the higher the premium on the option is likely to be.

Call options generally sell at a price below their exercise value, and the greater the exercise value, the lower the premium on the option is likely to be.

Call options generally sell at a price below their exercise value, and the lower the exercise value, the lower the premium on the option is likely to be.

Because of the put-call parity relationship, under equilibrium conditions a put option on a stock must sell at exactly the same price as a call option on the stock.

If the underlying stock does not pay a dividend, it does not make good economic sense to exercise a call option prior to its expiration date, even if this would yield an immediate profit.

Question 4

Suppose you believe that Basso Inc.’s stock price is going to increase from its current level of $22.50 sometime during the next 5 months. For $3.10 you can buy a 5-month call option giving you the right to buy 1 share at a price of $25 per share. If you buy this option for $3.10 and Basso’s stock price actually rises to $45, what would your pre-tax net profit be?

-$3.10

$16.90

$17.75

$22.50

$25.60

Question 5

Which of the following statements is CORRECT?

Call options give investors the right to sell a stock at a certain strike price before a specified date.

Options typically sell for less than their exercise value.

LEAPS are very short-term options that were created relatively recently and now trade in the market.

An option holder is not entitled to receive dividends unless he or she exercises their option before the stock goes ex dividend.

Put options give investors the right to buy a stock at a certain strike price before a specified date.

Question 6

An option that gives the holder the right to sell a stock at a specified price at some future time is

a put option.

an out-of-the-money option.

a naked option.

a covered option.

a call option.

Question 7

Which of the following statements is CORRECT?

When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation.

Because of tax effects, an increase in the risk-free rate will have a greater effect on the after-tax cost of debt than on the cost of common stock as measured by the CAPM.

If a company’s beta increases, this will increase the cost of equity used to calculate the WACC, but only if the company does not have enough reinvested earnings to take care of its equity financing and hence must issue new stock.

Higher flotation costs reduce investors’ expected returns, and that leads to a reduction in a company’s WACC.

When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation.

Question 8

You have been hired as a consultant by Feludi Inc.’s CFO, who wants you to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of common from reinvested earnings?

9.67%

9.97%

10.28%

10.60%

Question 9

Which of the following statements is CORRECT?

The after-tax cost of debt usually exceeds the after-tax cost of equity.

For a given firm, the after-tax cost of debt is always more expensive than the after-tax cost of non-convertible preferred stock.

Retained earnings that were generated in the past and are reported on the firm’s balance sheet are available to finance the firm’s capital budget during the coming year.

The WACC that should be used in capital budgeting is the firm’s marginal, after-tax cost of capital.

The WACC is calculated using before-tax costs for all components

Question 10

Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company’s cost of preferred stock for use in calculating the WACC?

8.72%

9.08%

9.44%

9.82%

10.22%

Question 11

Adams Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm’s cost of common from reinvested earnings based on the CAPM?

11.30%

11.64%

11.99%

12.35%

12.72%

Question 12

Which of the following statements is CORRECT? Assume a company’s target capital structure is 50% debt and 50% common equity.

The WACC is calculated on a before-tax basis.

The WACC exceeds the cost of equity.

The cost of equity is always equal to or greater than the cost of debt.

The cost of reinvested earnings typically exceeds the cost of new common stock.

The interest rate used to calculate the WACC is the average after-tax cost of all the company’s outstanding debt as shown on its balance sheet.

Question 13

Which of the following statements is CORRECT?

The NPV method assumes that cash flows will be reinvested at the risk-free rate, while the IRR method assumes reinvestment at the IRR.

The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the risk-free rate.

The NPV method does not consider all relevant cash flows, particularly cash flows beyond the payback period.

The IRR method does not consider all relevant cash flows, particularly cash flows beyond the payback period.

The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR.

Question 14

The WACC for two mutually exclusive projects that are being considered is 12%. Project K has an IRR of 20% while Project R’s IRR is 15%. The projects have the same NPV at the 12% current WACC. Interest rates are currently high. However, you believe that money costs and thus your WACC will soon decline. You also think that the projects will not be funded until the WACC has decreased, and their cash flows will not be affected by the change in economic conditions. Under these conditions, which of the following statements is CORRECT?

You should delay a decision until you have more information on the projects, even if this means that a competitor might come in and capture this market.

You should recommend Project R, because at the new WACC it will have the higher NPV.

You should recommend Project K, because at the new WACC it will have the higher NPV.

You should recommend Project R because it will have both a higher IRR and a higher NPV under the new conditions.

You should reject both projects because they will both have negative NPVs under the new conditions.

Question 15

Which of the following statements is CORRECT?

For mutually exclusive projects with normal cash flows, the NPV and MIRR methods can never conflict, but their results could conflict with the discounted payback and the regular IRR methods.

Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.

If a firm uses the discounted payback method with a required payback of 4 years, then it will accept more projects than if it used a regular payback of 4 years.

The percentage difference between the MIRR and the IRR is equal to the project’s WACC.

The NPV, IRR, MIRR, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects

Question 16

Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?

A project’s NPV increases as the WACC declines.

A project’s MIRR is unaffected by changes in the WACC.

A project’s regular payback increases as the WACC declines.

A project’s discounted payback increases as the WACC declines.

A project’s IRR increases as the WACC declines.

Question 17

Which of the following statements is CORRECT?

One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.

One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital.

One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.

One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.

One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project’s full life.

Question 18

Which of the following statements is CORRECT?

If a project has “normal” cash flows, then its MIRR must be positive.

If a project has “normal” cash flows, then it will have exactly two real IRRs.

The definition of “normal” cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project’s life.

If a project has “normal” cash flows, then it can have only one real IRR, whereas a project with “nonnormal” cash flows might have more than one real IRR.

If a project has “normal” cash flows, then its IRR must be positive.

Question 19

Which of the following statements is CORRECT?

Only incremental cash flows are relevant in project analysis, the proper incremental cash flows are the reported accounting profits, and thus reported accounting income should be used as the basis for investor and managerial decisions.

It is unrealistic to believe that any increases in net working capital required at the start of an expansion project can be recovered at the project’s completion. Working capital like inventory is almost always used up in operations. Thus, cash flows associated with working capital should be included only at the start of a project’s life.

If equipment is expected to be sold for more than its book value at the end of a project’s life, this will result in a profit. In this case, despite taxes on the profit, the end-of-project cash flow will be greater than if the asset had been sold at book value, other things held constant.

Changes in net working capital refer to changes in current assets and current liabilities, not to changes in long-term assets and liabilities. Therefore, changes in net working capital should not be considered in a capital budgeting analysis.

If an asset is sold for less than its book value at the end of a project’s life, it will generate a loss for the firm, hence its terminal cash flow will be negative.

Question 20

The CFO of Cicero Industries plans to calculate a new project’s NPV by estimating the relevant cash flows for each year of the project’s life (i.e., the initial investment cost, the annual operating cash flows, and the terminal cash flow), then discounting those cash flows at the company’s overall WACC. Which one of the following factors should the CFO be sure to INCLUDE in the cash flows when estimating the relevant cash flows?

All sunk costs that have been incurred relating to the project.

All interest expenses on debt used to help finance the project.

The investment in working capital required to operate the project, even if that investment will be recovered at the end of the project’s life.

Sunk costs that have been incurred relating to the project, but only if those costs were incurred prior to the current year.

Effects of the project on other divisions of the firm, but only if those effects lower the project’s own direct cash flows.

Question 21

Puckett Inc. risk-adjusts its WACC to account for project risk. It uses a WACC of 8% for below-average risk projects, 10% for average-risk projects, and 12% for above-average risk projects. Which of the following independent projects should Puckett accept, assuming that the company uses the NPV method when choosing projects?

Project B, which has below-average risk and an IRR = 8.5%.

Project C, which has above-average risk and an IRR = 11%.

Without information about the projects’ NPVs we cannot determine which project(s) should be accepted.

All of these projects should be accepted.

Project A, which has average risk and an IRR = 9%.

Question 22

Collins Inc. is investigating whether to develop a new product. In evaluating whether to go ahead with the project, which of the following items should NOT be explicitly considered when cash flows are estimated?

The project will utilize some equipment the company currently owns but is not now using. A used equipment dealer has offered to buy the equipment.

The company has spent and expensed for tax purposes $3 million on research related to the new detergent. These funds cannot be recovered, but the research may benefit other projects that might be proposed in the future.

The new product will cut into sales of some of the firm’s other products.

If the project is accepted, the company must invest $2 million in working capital. However, all of these funds will be recovered at the end of the project’s life.

The company will produce the new product in a vacant building that was used to produce another product until last year. The building could be sold, leased to another company, or used in the future to produce another of the firm’s products.

Question 23

Which of the following procedures best accounts for the relative risk of a proposed project?

Adjusting the discount rate downward if the project is judged to have above-average risk.

Reducing the NPV by 10% for risky projects.

Picking a risk factor equal to the average discount rate.

Ignoring risk because project risk cannot be measured accurately.

Adjusting the discount rate upward if the project is judged to have above-average risk.

Question 24

Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project?

Shipping and installation costs.

Cannibalization effects.

Opportunity costs.

Sunk costs that have been expensed for tax purposes.

Changes in net working capital

Question 25

Which of the following statements is CORRECT?

Suppose a firm is operating its fixed assets at below 100% of capacity, but it has no excess current assets. Based on the AFN equation, its AFN will be larger than if it had been operating with excess capacity in both fixed and current assets.

If a firm retains all of its earnings, then it cannot require any additional funds to support sales growth.

Additional funds needed (AFN) are typically raised using a combination of notes payable, long-term debt, and common stock. Such funds are non-spontaneous in the sense that they require explicit financing decisions to obtain them.

If a firm has a positive free cash flow, then it must have either a zero or a negative AFN.

Since accounts payable and accrued liabilities must eventually be paid off, as these accounts increase, AFN as calculated by the AFN equation must also increase.

Question 26

A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN to increase?

The company increases its dividend payout ratio.

The company begins to pay employees monthly rather than weekly.

The company’s profit margin increases.

The company decides to stop taking discounts on purchased materials.

The company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.

Question 27

F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?

A switch to a just-in-time inventory system and outsourcing production.

The company reduces its dividend payout ratio.

The company switches its materials purchases to a supplier that sells on terms of 1/5, net 90, from a supplier whose terms are 3/15, net 35.

The company discovers that it has excess capacity in its fixed assets.

A sharp increase in its forecasted sales.

Question 28

The term “additional funds needed (AFN)” is generally defined as follows:

Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.

The amount of assets required per dollar of sales.

The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.

A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.

Funds that are obtained automatically from routine business transactions.

Question 29

The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company had operated at full capacity?

$312.5

$328.1

$344.5

$361.8

$379.8

Question 30

Which of the following statements is CORRECT?

The AFN equation for forecasting funds requirements requires only a forecast of the firm’s balance sheet. Although a forecasted income statement may help clarify the results, income statement data are not essential because funds needed relate only to the balance sheet.

Dividends are paid with cash taken from the accumulated retained earnings account, hence dividend policy does not affect the AFN forecast.

A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.

If the ratios of assets to sales and spontaneous liabilities to sales do not remain constant, then the AFN equation will provide more accurate forecasts than the forecasted financial statements method.

Any forecast of financial requirements involves determining how much money the firm will need, and this need is determined by adding together increases in assets and spontaneous liabilities and then subtracting operating income.

PART 2

Question 1

Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

To enable the firm to borrow at a below-market interest rate.

To make it easier to grant stock options to employees.

To help prevent a hostile takeover.

To help retain valued employees.

To increase worker productivity.

Question 2

Which of the following is NOT normally regarded as being a barrier to hostile takeovers?

Targeted share repurchases.

Shareholder rights provisions.

Restricted voting rights.

Poison pills.

Abnormally high executive compensation.

Question 3

Which of the following statements is CORRECT?

Back before the SEC was created in the 1930s, companies would declare reverse splits in order to boost their stock prices. However, this was determined to be a deceptive practice, and it is illegal today.

Stock splits create more administrative problems for investors than stock dividends, especially determining the tax basis of their shares when they decide to sell them, so today stock dividends are used far more often than stock splits.

When a company declares a stock split, the price of the stock typically declines by about 50% after a and this necessarily reduces the total market value of the2-for-1 split equity.

If a firm’s stock price is quite high relative to most stocks-say $500 per share-then it can declare a stock split of say 10-for-1 so as to bring the price down to something close to $50. Moreover, if the price is relatively low-say $2 per share-then it can declare a “reverse split” of say 1-for-25 so as to bring the price up to somewhere around $50 per share.

When firms are deciding on the size of stock splits-say whether to declare a 2-for-1 split or a 3-for-1 split, it is best to declare the smaller one, in this case the 2-for-1 split, because then the after-split price will be higher than if the 3-for-1 split had been used.

Question 4

The capital budget of Creative Ventures Inc. is $1,000,000. The company wants to maintain a target capital structure that is 30% debt and 70% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

$100,000

$200,000

$300,000

$400,000

$500,000

Question 5

If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay

no dividends to common stockholders.

dividends only out of funds raised by the sale of new common stock.

dividends only out of funds raised by borrowing money (i.e., issue debt).

dividends only out of funds raised by selling off fixed assets.

no dividends except out of past retained earnings.

Question 6

Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment?

$205,000

$500,000

$950,000

$2,550,000

$3,050,000

Question 7

The projected capital budget of Kandell Corporation is $1,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

$122,176

$128,606

$135,375

$142,500

Question 8

Which of the following statements is correct?

If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increae

The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model.

Large stock repurchases financed by debt tend to increase earnings per share, but they also increase the firm’s financial risk.

A dollar paid out to repurchase stock is taxed at the same rate as a dollar paid out in dividends. Thus, both companies and investors are indifferent between distributing cash through dividends and stock repurchase programs.

The tax code encourages companies to pay dividends rather than retain earnings.

Question 9

Which of the following statements is correct?

One advantage of dividend reinvestment plans is that they enable investors to postpone paying taxes on the dividends credited to their account.

Stock repurchases can be used by a firm that wants to increase its debt ratio.

Stock repurchases make sense if a company expects to have a lot of profitable new projects to fund over the next few years, provided investors are aware of these investment opportunities.

One advantage of an open market dividend reinvestment plan is that it provides new equity capital and increases the shares outstanding.

One disadvantage of dividend reinvestment plans is that they increase transactions costs for investors who want to increase their ownership in the company.

Question 10

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

An increase in the corporate tax rate.

An increase in the personal tax rate.

The Federal Reserve tightens interest rates in an effort to fight inflation.

The company’s stock price hits a new low.

An increase in costs incurred when filing for bankruptcy.

Question 11

Which of the following statements is CORRECT?

The optimal capital structure simultaneously maximizes EPS and minimizes the WACC.

The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price.

The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC.

The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.

As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.

Question 12

Which of the following statements is CORRECT?

The capital structure that minimizes the interest rate on debt also maximizes the expected EPS.

The capital structure that minimizes the required return on equity also maximizes the stock price.

The capital structure that minimizes the WACC also maximizes the price per share of common stock.

The capital structure that gives the firm the best credit rating also maximizes the stock price.

The capital structure that maximizes expected EPS also maximizes the price per share of common stock.

Question 13

Based on the information below for Benson Corporation, what is the optimal capital structure?

Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90.

Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20.

Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.

Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00.

Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50.

Question 14

Which of the following statements is CORRECT?

Since debt financing is cheaper than equity financing, raising a company’s debt ratio will always reduce its WACC.

Increasing a company’s debt ratio will typically reduce the marginal cost of both debt and equity financing. However, this action still may raise the company’s WACC.

Increasing a company’s debt ratio will typically increase the marginal cost of both debt  and equity financing. However, this action still may lower the company’s WACC.

Since a firm’s beta coefficient it not affected by its use of financial leverage, leverage does not affect the cost of equity.

Since debt financing raises the firm’s financial risk, increasing a company’s debt ratio will always increase its WACC

Question 15

Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm’s operations.

Sales price variability.

The extent to which operating costs are fixed.

The extent to which interest rates on the firm’s debt fluctuate.

Input price variability.

Demand variability.

Question 16

Which of the following statements is CORRECT?

The capital structure that maximizes the stock price is also the capital structure that maximizes earnings per share.

The capital structure that maximizes the stock price is also the capital structure that maximizes the firm’s times interest earned (TIE) ratio.

Increasing a company’s debt ratio will typically reduce the marginal costs of both debt and equity financing; however, this still may raise the company’s WACC.

If Congress were to pass legislation that increases the personal tax rate but decreases the corporate tax rate, this would encourage companies to increase their debt ratios.

The capital structure that maximizes the stock price is also the capital structure that minimizes the weighted average cost of capital (WACC).

Question 17

Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?

Take steps to reduce the DSO.

Start paying its bills sooner, which would reduce the average accounts payable but not affect sales.

Sell common stock to retire long-term bonds.

Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock.

Increase average inventory without increasing sales.

Question 18

Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket?

Depreciation.

Cumulative cash.

Repurchases of common stock.

Payment for plant construction.

Payments lags.

Question 19

Which of the following items should a company report directly in its monthly cash budget?

Cash proceeds from selling one of its divisions.

Accrued interest on zero coupon bonds that it issued.

New shares issued in a stock split.

New shares issued in a stock dividend.

Its monthly depreciation expense.

Question 20

Which of the following is NOT commonly regarded as being a credit policy variable?

Collection policy.

Credit standards.

Cash discounts.

Payments deferral period.

Credit period.

Question 21

Other things held constant, which of the following would tend to reduce the cash conversion cycle?

Place larger orders for raw materials to take advantage of price breaks.

Take all discounts that are offered.

Continue to take all discounts that are offered and pay on the net date.

Offer longer payment terms to customers.

Carry a constant amount of receivables as sales decline.

Question 22

A lockbox plan is

used to identify inventory safety stocks.

used to slow down the collection of checks our firm writes.

used to speed up the collection of checks received.

used primarily by firms where currency is used frequently in transactions, such as fast food restaurants, and less frequently by firms that receive payments as checks.

used to protect cash, i.e., to keep it from being stolen.

Question 23

Which of the following is NOT a reason why companies move into international operations?

To develop new markets for the firm’s products.

To better serve their primary customers.

Because important raw materials are located abroad.

To increase their inventory levels.

To take advantage of lower production costs in regions where labor costs are relatively low.

Question 24

Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days?

1.12

1.63

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Part I: 

Write a message to persuade your boss to invest capital resources to develop the product or service for sale.

Include secondary research to support your argument and explain what you will do in case the selected product or service does not initially sell as much as expected. Cite and reference sources using APA formatting. 

Select the appropriate channel for delivering your message based on context, audience, and purpose. 

Explain why you selected the channel. 

Note: Part I is the basis of your Week 5 Persuasive Presentation assignment.

Part II:

Write a sales pitch to sell the product/service to the end consumer. The sales pitch that you write could be part of a marketing campaign, which can be the verbiage for a commercial, a flyer, a message posted on social network, and so on. Make sure to identify the context, as per the examples, in which the sales pitch will take place. 

Select the appropriate channel for delivering your message based on context, audience, and purpose and state the channel you have chosen. 

Explain why you selected the channel. 

Below is the reading materials

Persuasive Messages

© E. Audras/PhotoAlto

Learning Objectives

After studying this chapter, you should be able to do the following:

1. Describe the relationship between credibility and persuasion.
2. Explain the AIM planning process for persuasive messages and the basic components of most persuasive messages.
3. Explain how the tone and style of persuasive messages impact their influence.
4. Create compelling internal persuasive messages.
5. Compose influential external persuasive messages.
6. Construct effective mass sales messages.
7. Evaluate persuasive messages for effectiveness and fairness.

Why Does This Matter?

Hear Pete Cardon explain why this matters.

bit.ly.com/CardonWhy9

In many business situations, you hope to persuade others. In internal business communications, you may want your boss, peers, or colleagues to consider or adopt your ideas when their perspectives differ from yours. In external business communications, you will want to persuade your clients, customers, and prospects to use your products and services. Persuasion involves influencing others to see the merits of your ideas and act on your requests, even when they initially resist. In this chapter, we explore strategies for persuading others through writing.

In some ways, all business messages contain an element of persuasion—that is, you are hoping to influence the way others think, feel, or behave. Many of the concepts in this chapter will enhance your ability to make any kind of request. However, the approaches in this chapter are most applicable to situations in which your audience will initially resist your requests.

Throughout this chapter, you will see examples of persuasive messages at Better Horizons Credit Union. The chapter case provides the background.

Chapter Case: Shifting Course at Better Horizons Credit Union

Who’s Involved

© Ingram Publishing

Haniz Zogby, marketing specialist and loan officer

• Started working at Better Horizons nearly five years ago. She has worked 20 to 30 hours per week while attending college with a major in finance and a minor in event management.
• Started as a teller. Within a few years, she was promoted to positions of teller supervisor, loan officer, and marketing specialist.
• Currently working on marketing initiatives under the direction of Christine Russo.

© BananaStock

Christine Russo, president and CEO

• Has worked at Better Horizons for approximately ten years.
• Currently interested in increasing the number of young members. With declining numbers of young members, she is concerned that the credit union does not have good long-term prospects.

Situation 1

Christine Wants to Build Support for New Banking Services That Meet the Needs of Younger Members

Christine recognized that people under the age of 30 were not joining the credit union. Christine wanted to write a message to board members about adopting marketing strategies and services that appeal to younger members. She planned to follow up by presenting her ideas in person at an upcoming meeting. The board is composed of longtime members who favor what they consider a “personal,” “friendly,” and “homey” credit union environment. They view moves to online marketing and services as breaking their brand of community and personal touch. The majority also oppose adding too many extra financial services, perceiving these services as “slick” and “too similar to banks.”

Situation 2

Haniz Is in Charge of Recruiting Participants for a Local Charity Event

Christine asked Haniz to be in charge of recruiting credit union members to join this year’s Hope Walkathon to support research on breast cancer. Better Horizons has assembled a walkathon team for this prominent community event each year for nearly a decade. Haniz is writing an email to send to all credit union members. The message will be modified slightly to appear as an announcement on the credit union website as well.

Situation 3

Haniz Needs to Create a Flyer Explaining the Benefits of Credit Union Membership Compared to Banks

Haniz is working on a flyer describing the benefits of membership at Better Horizons Credit Union. The flyer will be part of a packet of materials that is distributed to community members who participate in free financial planning and income tax assistance seminars offered by Better Horizons. Haniz is using the message to highlight the benefits of Better Horizons compared to local banks.

Situation 4

Haniz Is Helping to Develop a Sales Message for Auto Loans

Haniz and several other employees are working on sales messages for auto loans. In recent months, Better Horizon’s senior management decided the credit union should become a “player” in the auto loans market. Few Better Horizons members take advantage of car loans, most assuming that dealer financing is cheaper and easier to get.

Task 1

How will Christine and Haniz write a message to board members that warms them up to ideas about new online services and marketing geared toward gaining younger members? (See the section on internal persuasive messages.)

Task 2

How will Haniz persuade credit union members to join the Hope Walkathon? (See the section on external persuasive messages.)

Task 3

How will Haniz develop a general-purpose flyer that shows the broad benefits of choosing Better Horizons Credit Union over banks? (See the “Constructing External Persuasive Messages” section.)

Task 4

How will Haniz develop sales messages for an auto loan campaign? (See the “Composing Mass Sales Messages” section.)

The Importance of Credibility in an Era of Mistrust and Skepticism

LO9.1. Describe the relationship between credibility and persuasion.

While credibility is critical to all business communications, its importance is heightened for persuasive messages. By definition, persuasion implies that you are communicating with someone who does not think or feel the same way as you do. So, your goal is to help your audience members identify with and find merit in your positions. If they question your credibility, they are unlikely to carefully consider your ideas, requests, or recommendations.

Persuasion is becoming more difficult as we live in a time of increasing mistrust. In Chapter 1, we discussed the declining levels of trust for nearly all professional groups, particularly business-related occupations. Michael Maslansky, one of the leading corporate communications experts, has labeled this the post-trust era (PTE):

Just a few years ago, salespeople, corporate leaders, marketing departments, and communicators like me had it pretty easy. We looked at communication as a relatively linear process. … But trust disappeared, things changed. … In a word, trust is out, skepticism is in.1

Over the past decade, Michael Maslansky and his colleagues have examined how language is used to persuade and motivate others. By interviewing hundreds of thousands of employees and customers in some 30 countries, they have found that the language of trust is more important than ever. Furthermore, they have noticed emerging trends in how language impacts trust. Strategies for persuasion that once worked are less effective in the PTE. Other strategies continue to work well. In this chapter, we sort through some of these basic principles of persuasive writing and identify those strategies that are most effective in the PTE.

Applying the AIM Planning Process to Persuasive Messages

LO9.2. Explain the AIM planning process for persuasive messages and the basic components of most persuasive messages.

Persuasion involves extensive planning: analyzing your audience to understand their needs, values, and how they are influenced; developing your ideas as you wrestle with the complicated business issues at hand; and creating a message structure that most effectively reduces resistance and gains buy-in. Many effective business communicators spend weeks and months learning about their target audiences, gathering information, and piecing together persuasive messages.

Understand Your Audience

To convince others to modify their own ideas and accept yours, you need to show that you care about them and that your ideas fit into their interests. This is the approach communication specialist Liz Simpson recommends:

To succeed at the persuasion game, you have to be absolutely committed to understanding the other side’s position as well as your own. Without that willingness to try on the other side’s arguments, you simply cannot be persuasive. From that understanding will come the insights you need to move the other side over to your camp.2

This is true not only for ideas but also for products and services. Your best argument is always one that meets the needs and wants of your audience.

Understanding the needs and values of others is not simple. It requires a strong listening orientation. You will need to ask lots of questions to get beyond a surface understanding about the hopes, expectations, and hidden assumptions of your target audience. Once you know your target audience’s needs and values, you are in a strong position to explain how your product, service, or idea benefits them.

In addition to understanding the needs and values of your target audience, you should consider the psychological principles that impact how people are influenced. Also, you should consider whether you are making a logical appeal or an emotional one in your persuasive messages.

Understand Methods of Influence

Dr. Robert Cialdini, a marketing psychologist, has spent his career studying how people are influenced in business and marketing environments. He has examined research in this area for four decades, plus he spent three years taking undercover jobs in car dealerships, telemarketing firms, fund-raising organizations, and other buyer-seller environments to learn the most influential ways of getting people to say yes. Based on his work, he has identified six principles of persuasion (aside from the price and quality of products and services). These principles include reciprocation, consistency, social proof, liking, authority, and scarcity.3 Haniz’s message to recruit credit union members for the Hope Walkathon offers an interesting example for applying these various pinciples (see Figure 9.7, p. 258, for her completed message).

Reciprocation is a principle of influence based on returning favors. As defined by Cialdini, “We should try to repay, in kind, what another person has provided us.”4 Cialdini cited an interesting study in which a professor sent Christmas cards to a random sample of strangers to see what would happen. Many of the card recipients reciprocated, sending cards to the professor without attempting to find out who he was. The study showed that even card receivers who did not know the card sender and who might not interact with the card sender in the future felt compelled to return the favor of sending a card. People tend to feel obligated to pay back others when they’ve received something of value.5

Haniz uses the principle of reciprocation in her message in several ways. For example, she focuses on a lengthy reciprocal relationship that the credit union has with the local breast cancer center, and the walkathon serves as the mechanism that draws the two organizations together. The credit union helps the center by generating walkathon donations, and the center helps the credit union and the larger community through more effective breast cancer treatment and education. Furthermore, the message implies a reciprocal relationship between the credit union and its members by offering various free items, such as a T-shirt, a water bottle, and a cancer guide, to members who are willing to participate in the walkathon.

Consistency is based on the idea that once people make an explicit commitment, they tend to follow through or honor that commitment. In other words, they want to stay consistent with their original commitment. Cialdini cited several studies to make this point. In one, psychologists found that horse racing fans become more confident that their horses would win after placing a bet. Once they made a final commitment, they were further convinced of the correctness of their choice.6

Haniz appeals to commitment and consistency in several ways. Foremost, she appeals to the credit union’s long commitment to the fight against breast cancer. Some credit union members will want to continue to honor this long-standing collective commitment and will appreciate that their credit union is doing so. She also provides links in the message for people to immediately act on their interest in the walkathon. A link to register right now serves as an immediate commitment to participate.

Social proof is a principle of influence whereby people determine what is right, correct, or desirable by seeing what others do. Haniz employs several appeals to social proof in her letter. She describes the level of participation and contribution among members in last year’s walkathon, implying that the popularity and financial impact of this event make it a good cause. Also, the walkathon itself is a type of social proof; the gathering of thousands of people wearing team T-shirts and marching in unison for a cause is powerful imagery.7

Liking is a principle of influence whereby people are more likely to be persuaded by people who they like.8 Haniz appeals directly to this principle by describing Betty Williams, who is a breast cancer survivor, the benefactor of the breast center, a credit union member, and a participant in the walkathon. Betty Williams is presumably a person most people in the community know and like, a woman who many of the credit union members may know from running into her at the credit union or other community events, and a woman who is passionate about an important cause (a reason for liking). Haniz emphasizes in the message that walkathon participants will join this likable and respected community member at the walkathon.

Authority is a principle of influence whereby people follow authority figures. The number of celebrity endorsements in advertising is evidence of how authority can impact persuasion.9 Although Haniz does not appeal to a national celebrity, she does appeal to a prominent local community member—again Betty Williams. With Betty’s level of influence and personal experience combating cancer, she is likely seen as an authority. Furthermore, Haniz also appeals to members to support the Betty Williams Breast Center, a group of expert professionals who collectively are authorities on breast cancer.

Scarcity is a principle of influence whereby people think there is limited availability of something they want or need, so they must act quickly.10 Haniz employs this principle in terms of time. She explains that the walkathon occurs only once each year (limited time period to participate) and that participants must sign up by a given deadline (limited time period to sign up).

You will apply these principles most often in external persuasive messages, and you should always apply them fairly. Cialdini describes them as “weapons of influence.”11 The very term weapons implies that they are powerful and can do harm. In the “Apply the FAIR Test” section near the end of the chapter, we further discuss the appropriate use of these principles.

Persuade through Emotion and Reason

Most people justify their business decisions based on the soundness of ideas, not feelings. Savvy business communicators, however, understand the importance of injecting emotion into their persuasive messages. While they appreciate the place of reason in business and consumer decisions, they understand that resistance to ideas, products, and services is often emotional. Conversely, they are aware that their target audiences often possess strong emotional attachment to competing ideas, products, and services. Thus, effective communicators find ways to appeal to the core emotional benefits of products, services, and ideas.12

Even in internal persuasive messages, emotional appeals are critical, as indicated by Craig Conway, president and CEO of PeopleSoft:

Good communicators have an enormous advantage over poor communicators because so much of running a company is inspirational. … You just have to be able to persuade people that they are a part of something bigger. If you have a creative vision and you can communicate it in a compelling way to get people excited, you will recruit better people as a result. Then, it is easy to convince the world that you have a more dynamic company.13

Part of understanding your audience is identifying the needs and values that resonate emotionally for them.

Typically, internal persuasive messages focus mostly on logical appeals. External persuasive messages, with the exception of those that emphasize price, generally include strong emotional appeals. As you develop persuasive messages, think about how to get the right mix of logical and emotional appeals. Generally, you will supply both but emphasize one or the other. Keep in mind that even when you choose to make strong emotional appeals in written messages, you should generally avoid the tone of mass advertising, where exaggeration, sarcasm, and over-the-top appeals are acceptable and even effective. Later in the chapter, you will notice several messages created by Haniz and Christine—two based more strongly on logical appeals (Figures 9.5 and 9.8) and two on emotional appeals (Figures 9.7 and 9.9).

Develop Your Ideas

Idea development for persuasive messages is critical. Since your audience is resistant to the message, one of your key tasks is to establish credibility. Developing strong ideas in the interest of your audience helps you demonstrate your voice of competence. It involves gaining a deep understanding of the benefits and drawbacks of your ideas, products, and services. In addition, it involves gaining a thorough understanding of competing ideas, products, and services.

Thus, before attempting to persuade others, expert business communicators seek to understand products, services, and ideas in great depth so that they can speak from an authoritative and competent perspective. To address the issue of attracting younger credit union members, Christine and Haniz spend months learning about the strategies that other credit unions use. When Haniz works on a message that promotes her credit union over local banks, she carefully analyzes and compares the major products and services offered by her credit union and those of competing banks. When Haniz works on a message to persuade credit union members to join the Hope Walkathon, she learns all she can about participation in this event and how it helps in the fight against breast cancer.

Components of Persuasive Messages

• Gain attention.
• Raise a need.
• Deliver a solution.
• Provide a rationale.
• Show appreciation.
• Give counterpoints (optional).
• Call to action.

Set Up the Message Structure

Most business writing is direct and explicit. It is direct in that you begin with a main idea or argument and then provide the supporting reasons. It is explicit in that nothing is implied; statements contain full and unambiguous meaning. When you write directly and explicitly, you help your readers understand your message and you show respect for their time.

Compared to other business messages, persuasive messages are somewhat more indirect and implicit. They are sometimes indirect in that they provide the rationale for a request before making the specific request. They are sometimes implicit in that the request or some of the rationale for the request may be implied. In other words, sometimes the reader needs to read between the lines to grasp the entire meaning. Implicit statements politely ask people to do or think differently. Also, explicitly stating some types of benefits is considered poor form—for example, matters of financial or career gain in internal persuasive requests.14

Attention

The first task of most persuasive messages is to gain the attention of your readers. You can do this in a variety of ways, including asking a rhetorical question, providing a compelling or interesting fact, revealing a compelling statistic, issuing a challenge, or posting a testimonial.15 For internal persuasive messages, the primary means of gaining attention is demonstrating a business need—a gap between what is and what could be.16 You generally have more flexibility in external persuasive messages as you choose your attention-getters. See Table 9.1 for examples of attention-getters Haniz might use for some of her communication tasks.

Table 9.1 Effective Attention-Getters

Type of Attention-GetterExampleRhetorical questionDid you know that average credit union members save $400 per year compared to bank customers?Intriguing statisticIn the past five years, we’ve lost over 200 members—over 10 percent of our membership.Compelling and unusual fact/sYou’ve probably heard car dealers boast about their near-zero percent interest rates—but there’s a catch! By financing with car dealers, you give up your opportunity to receive manufacturer rebates and your power to negotiate on price.ChallengePlease join our team in this year’s Hope Walkathon in the fight against breast cancer.Testimonial“I never knew I could have so much negotiating power with a preapproved loan. By getting my car loan through Better Horizons, I negotiated a great deal with the car dealer. This is the way to buy cars!”Need, Solution, and Rationale

In the body of your message, your first task is to tie your product, service, or idea to the needs of your readers. The best way to reduce the resistance your reader may have is to show that your message meets your readers’ needs. Once you’ve stated the need, you may describe your solution, which is a recommended product, service, or idea. Many readers will remain skeptical unless you provide convincing support. So, you will need to provide a strong rationale, meaning solid reasons why your product, service, or idea really benefits them. After all, you are more than likely attempting to influence skeptics.17

As you structure your message, consider how direct you should be. If your audience members are strongly and emotionally resistant to your solution, consider a more indirect approach so they warm up to your ideas before you suggest a solution. To make your message less direct, provide the rationale before the solution.

Appreciation

At some point in the body of the message, you should validate your readers by showing appreciation for their views and preferences. Validation implies that you recognize and appreciate others’ needs, wants, ideas, and preferences as legitimate and reasonable. By validating your readers, you show respect for them and demonstrate a balanced perspective.18

Counterpoints

Traditionally, communicators overcame objections by providing counterpoints to any of the audience members’ objections. In other words, they showed how their own ideas, products, or services were superior to the competing ideas, products, or services the audience favored.

Overcoming objections with counterpoints, however, is risky in the post-trust era. This approach may unnecessarily carry a me-versus-you tone and delegitimize the readers’ concerns. Michael Maslansky, in his research about emerging trends in sales messages in the PTE, states that validation is “using words to let people know that their concerns are valid,” and that it is the “polar opposite of overcoming objections.”19 He says the “new sales mantra [is to] agree with objections.”20 This perhaps ironic approach shows respect and balance because you validate the potential customer’s feelings and ideas. When you validate your readers, they are more likely to accept the merits of your persuasive message.

Thus, consider carefully whether to include counterpoints to your readers’ objections. When you know people well and believe that you will not create a me-versus-you adversarial stance, tactfully state how your ideas, products, and services outperform those of your readers.

Skilled business communicators understand that building support for their ideas takes time. Especially for persuasion within companies, you will generally use a mix of communication channels. Rarely will your ideas be accepted and enacted with one written message. However, one written message can make a powerful statement and open avenues of communication that lead to acceptance and adoption of your ideas.

Action

You conclude persuasive messages with a call to action, which asks your readers to take a specific step toward the purchase of a product or service or acceptance of an idea. However, a call to action should not be a hard sell; pressuring others is increasingly ineffective in the PTE.21 In external persuasive messages, the call to action is typically a specific and explicit step. In internal persuasive messages, the call to action is sometimes explicit and sometimes implicit. It is more likely to be implicit for controversial change ideas and when corresponding with superiors who have ultimate decision-making authority.

Guidelines for Tone for Persuasive Messages

• Apply the personal touch.
• Use action-oriented, lively language.
• Write with confidence.
• Offer choice.
• Show positivity.

Getting the Tone and Style Right for Persuasive Messages

LO9.3. Explain how the tone and style of persuasive messages impact their influence.

The tone for persuasive messages should be confident and positive, yet at the same time avoid exaggeration or hype. This is tricky! You will no doubt need to make some trade-offs. The more confident and positive you make your message, the more you risk being perceived as pushy or exaggerated. As you reduce confidence and positivity, you risk your product, service, or idea being perceived as weak or unexciting. One benefit of asking colleagues to read your persuasive message before you send it is they can help you decide if you have achieved the right level of confidence and positivity without sacrificing believability.

The writing style of your message should be action-oriented and lively. But again, you risk being perceived as unbelievable or overly enthusiastic if you overdo the language. However, you risk being perceived as dull or unexceptional if you don’t use engaging, lively language. Proofreading by yourself and with the help of colleagues will help you get the right writing style to set your message apart.

Apply the Personal Touch

Recently, a number of competing developers delivered presentations to a property owner, each hoping to persuade him to sell them 4,000 acres of much-sought-after property. The presentations were nearly identical, so the property owner was unsure how to choose the best developer. A few days later, the property owner received a handwritten thank-you note from one candidate. The property owner immediately awarded the deal to that developer because he had taken the time to write a message of appreciation.22

Often, your competitors are nearly identical to you. Your colleagues and customers will be more easily persuaded when you show interest in them personally, speak to them in personal terms, understand their specific needs, and demonstrate that you are seeking benefits for them. Personalizing your messages is not easy, though, as Michael Maslansky points out:

For all of us, selling ideas or products or ourselves begins with a need to talk about something that we have and the audience should need, want, or agree with. The problem is that too often, we focus on the first part—what we want to sell, and too little on the second—why they want to buy … and yet, our audience demands increasingly that messages, products, and services speak directly to them.23

Creating messages that speak directly to customers and colleagues requires that you use language that helps your customers and colleagues feel the product, service, or idea is just for them.24

One of the primary strategies you can use to personalize persuasive messages is your selection of voice—either you-voice, we-voice, I-voice, or impersonal voice (as introduced in Chapter 2). Table 9.2 offers guidance on choosing the appropriate voice. Generally, you-voice is more effective in external persuasive messages to customers and clients because it emphasizes the benefits they receive from your products and services. From the customer’s perspective, the you-voice shows them that they are the center of attention.

Table 9.2 Voice in Persuasive Messages

VoiceAppropriate CasesCautionsExamplesYou-voiceUse in external persuasive messages to emphasize reader benefits.Presumptuousness—assuming you know what is good for someone elseWhen you take out an auto loan, you get a variety of resources to help you in your car shopping, including a free copy of a Kelly Blue Book, access to free Carfax reports, Mechanical Breakdown Insurance (MBI), and Guaranteed Auto Protection (GAP).   In this example, you-voice helps show direct benefits to the customers. Overuse across an entire message, however, may come across as presumptuous, overbearing, or exaggerated.We-voiceUse in internal persuasive messages to emphasize shared work goals.Presumptuousness—assuming you share common beliefs, ideas, or understanding with your colleaguesAt Better Horizons, we’ve instilled a personal touch into every aspect of our business. We’ve reinforced this culture with face-to-face services. Our tellers welcome members by name. When members come into the credit union, they know we care about them as people, not just as customers. The warm, friendly, genuine, and personal approach we take to serving our members is why I’m so proud to work here.   In this passage, we-voice instills a sense of shared values, priorities, and goals. We-voice can instill a strong sense of teamwork. When audience members have different perspectives, however, they may resent that you are stating agreement where it does not exist.I-voiceUse in all persuasive messages sparingly.Overuse implies self-centerednessAfter examining the results of other credit unions, I am convinced that these tools can build emotional connections and loyalty with our members.   In this example, I-voice is used to show a personal opinion and shows respect for audience members who are not yet fully peruaded. Frequent use of I-voice across an entire message, however, may come across as emphasizing your interests rather than those of the audience.Impersonal voiceUse in persuasive messages to emphasize objectivity and neutrality.Overuse may depersonalize the messageThe basic difference between credit unions and banks is that credit u

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Assignment: Psy 370 Ch. 16 Assignment1.

It has been proposed that in the DMS-V, discussion on the concept of autisma.will be removed from the text.

b.will remain unchanged.

c.will be replaced with a broader category referred to as “conduct disorders of autistic type” and will drop references to linguistic problems.

d.be discussed as a single category of “autism spectrum disorders” rather than a list that includes numerous subcategories.

2.

The “DSM” in DSM-IV refers to thea.Direct Services Method of Psychological Intervention

b.Diagram of Severe Mental Illnesses

c.Doctor’s Scientific/Psychological Medical Guide

d.Diagnostic and Statistical Manual of Mental Disorders

3.

In the diathesis-stress model, the term diathesis refers to a(n)a.social norm.

b.genetic or personality-based predisposition toward vulnerability.

c.anxiety-producing environmental event.

d.state of calm.

4.

According to the diathesis-stress model, psychopathology results whena.a stressful event triggers an already existing vulnerability or predisposition.

b.the id develops.

c.a gene that is programmed to activate at a certain point during the lifespan “turns on” without any trigger.

d.a mentally healthy person takes a psychoactive drug.

5.

An imbalance in _____ appears to play a role in the acquisition of major depressive disorder.a.corpus callosum activity

b.dopamine levels

c.serotonin levels

d.beta-amyloids

6.

Echolalia is best described asa.a lack of organized speech.

b.parroting what someone else is saying.

c.saying socially inappropriate things.

d.not speaking at all.

7.

Under which DSM-IV category would you find autism spectrum disorders?a.Personality disorders

b.Adjustment disorders

c.Pervasive developmental disorders

d.Dissociative disorders

8.

On the DSM-IV, Asperger syndrome would be found under the label “_____ disorders.”a.anxiety

b.autism spectrum

c.personality

d.somatoform

9.

Winne has good verbal skills and is highly intelligent, but has social relationship skills typical of an autistic child. Given this description, Winnie is most likely to be diagnosed with _____ syndrome.a.Down

b.Kleinfelter

c.Turner

d.Asperger

10.

A now retracted article by Wakefield and others claimed that autism is caused bya.the MMR vaccine.

b.baby formula fortified with iron.

c.excessive infantile exposure to television and computer screens.

d.lead poisoning.

11.

What key evidence has emerged to disprove the myth that thimerosal (a mercury-based preservative) is responsible for autism?a.The incidence of autism has decreased significantly, but only in females who are immune the impact of thimerosal.

b.As the amount of thimerosal in baby food has increased, the incidence of autism has decreased.

c.The incidence of autism has climbed after thimerosal was removed from the MMR vaccine.

d.Historically, no children with autism ever came into direct contact with thimerosal.

12.

The most likely reason for the increase in the number of children diagnosed with autism spectrum disorders is thata.in the 1990s, Asperger syndrome was removed from the DSM-IV.

b.in the 1990s, autism was removed from the U.S. list of disabilities eligible for special education services.

c.there is now a broader definition for what used to be just autism.

d.the rise has corresponded with the significant increase in the number of infants born with HIV.

13.

What behavior would an infant display that would lead a competent doctor to accurately suspect the child is autistic?a.Excessive levels of joint attention

b.Failure to respond to human voices

c.An obsession with playing peek-a-boo and other social games

d.Showing a clear preference for human over nonhuman stimuli

14.

Which statement concerning the intellectual abilities of autistic individuals is most accurate?a.The vast majority of autistics are mildly to severely mentally retarded.

b.Autistic individuals tend to score lower higher on nonverbal than verbal measures of intelligence.

c.More than half of children with autism score above 71 on IQ tests.

d.The description of some individuals with autism as “savants” with special abilities in a given area (e.g., quickly calculating the days of the week corresponding to dates on a calendar) is a myth.

15.

All of the following are currently legitimate suspected causes of autism excepta.lack of a theory of mind.

b.genetic defect.

c.a lack of executive functions.

d.cold, rigid parenting.

16.

Concerning genetic explanations of autism,a.there is clear evidence that autism is solely due to the presence of a third 21st chromosome.

b.the genes involved appear to cause a rapid deceleration of head and brain development over the course of the first three years after birth.

c.at this point there is no evidence of any genetic basis of the disorder.

d.many genes have been implicated including some that appear to have been copied too many times.

17.

Which brain areas have been implicated as a possible cause of the behavioral problems found in individuals with autism?a.The hypothalamus and temporal cortex

b.The hippocampus and parietal cortex

c.The amygdala and frontal cortex

d.The thalamus and the occipital cortex

18.

Mirror neuronsa.generate multiple copies of themselves, and each copy leads to an increase in dopamine levels.

b.are very fragile, and when they “die,” they produce excessive levels of neuritic plaque.

c.only fire when they are stimulated by other mirror neurons.

d.allow us to relate the feelings of others to our own experiences.

19.

Executive functions are thought to take place in the _____ cortex of the brain.a.prefrontal

b.parietal

c.temporal

d.occipital

20.

According to the executive dysfunction hypothesis, autistic behavior is the result of a brain that isa.unable to plan and change one’s course of actions.

b.overrun with mirror neurons.

c.too small.

d.lacking Broca’s area.

21.

Baron-Cohen has recently suggested that the extreme _____ hypothesis may explain the cause of Asperger syndrome.a.executive dysfunction

b.central coherence

c.male brain

d.theory-of-mind

22.

According to the extreme male brain theory of autism, the key problem with individuals with autism is that theya.are too empathetic and try too hard to keep the world orderly.

b.are too empathetic and do not attempt to keep the world orderly.

c.lack empathy and try too hard to keep the world orderly.

d.lack empathy and do not attempt to keep the world orderly.

23.

Recent research has shown that the nasal administration of _____ appears to improve social information and understanding in high-functioning individuals with autism.a.oxytocin

b.thimerosal

c.beta-amyloid

d.antihistamines

24.

Which statement concerning the long-term prognosis for autistic children is true?a.Intensive behavior modification programs have been shown to increase levels of aggressiveness and self-stimulation.

b.Most autistics achieve a normal level of functioning when they reach adulthood.

c.Most can be improved significantly through drug treatment.

d.The best interventions involve intensive and highly structured behavioral and educational programs aimed at young children.

25.

Ivar Lovaas conducted pioneering research on children with autism in which he was able to use _____ to significantly improve their language and social skills.a.mirror therapy

b.psychoactive medications

c.psychoanalysis

d.reinforcement principles

26.

The most accurate statement concerning the use of behavioral and cognitive interventions with children with autism is that theya.typically lead to significant improvements in all children, regardless of their age or level of intellect.

b.can lead to significant gains, especially in older children who do have significant intellectual disabilities.

c.can lead to significant gains, especially in young children who do not have severe intellectual disabilities.

d.are virtually worthless at changing behaviors.

27.

Which is the best example of a somatic symptom in a depressed infant?a.Failure to develop an attachment to the primary caregiver

b.The lack of language

c.A disrupted sleep pattern

d.The lack of interest in playing with a toy

28.

Failure to thrive in otherwise healthy infants is usuallya.so severe that it cannot be undone.

b.attributed to perinatal complications.

c.misdiagnosed as autism.

d.the result of having unaffectionate or depressed caregivers.

29.

Depression is most rare ina.middle adulthood.

b.young adulthood.

c.adolescence.

d.childhood.

30.

By definition, all individuals who are classified with comorbiditya.are extremely close to death.

b.possess two psychological conditions at the same time.

c.have been negatively impacted by both genetic and environmental factors.

d.cannot control their impulses.

31.

Children who have a depressive disordera.differ from adolescents and adults with depression, because children never attempt suicide while the older age groups often do.

b.often have problems with depression as adolescents and adults.

c.are easy to identify because they frequently talk about their negative feelings.

d.seldom respond well to any form of psychotherapy.

32.

Research has shown that _____ treatments tend to be the most effective when treating depression in children.a.drug

b.parental intervention

c.cognitive behavioral

d.psychoanalytic

33.

Many antidepressant drugs like Prozac are selective _____ reuptake inhibitors.a.norepinephrine

b.dopamine

c.serotonin

d.GABA

34.

In 2004, the United States government issued a warning concerning the use of some antidepressant drugs and the possible increased risk of ____ in adolescence.a.birth defects

b.suicide

c.addiction

d.pregnancy

35.

Which is true with regard to psychological “health” during adolescence?a.Few adolescents who are psychologically disturbed were maladjusted before they reached puberty.

b.Adolescents are far more likely than adults to experience some sort of psychological disturbance.

c.Most adolescents suffer at some point from some sort of significant psychological disturbance.

d.Adolescence is a time of heightened vulnerability for some forms of psychological disorders.

36.

Which statement concerning adolescence is true?a.Few adolescents engage in delinquent or risky behavior during this period of life.

b.Adolescents have little difficulty with self-regulatory behaviors.

c.Most adolescents cope remarkably well with the challenges of this period of life.

d.Most adolescents experience serious psychopathology during this period of life.

37.

Anorexia nervosa literally means “nervous loss of _____.”a.appetite

b.control

c.mind

d.weight

38.

Gwen has been diagnosed with bulimia nervosa. Which of the following characteristics would she be least likely to possess?a.The use of laxatives or self-vomiting to purge food

b.A refusal to maintain body weight in spite of being in an emaciated state

c.A feeling of being fat

d.A tendency to consume huge quantities of foods in a single sitting

39.

According to statistics, who is most likely to commit suicide?a.Jackson, a 25-year-old black male

b.George, an 18-year-old black male

c.Washington, an 80-year-old white male

d.Andrew, a 45-year-old white male

40.

Which of the following is true with regard to adolescent suicide?a.More males than females attempt and are successful at committing suicide.

b.More females attempt suicide, but more males are successful at committing suicide.

c.More females than males attempt and are successful at committing suicide.

d.More males attempt suicide, but more females are successful at committing suicide.

41.

According to statistics, what characteristic puts a teenage at the greatest risk for committing suicide?a.Lving in poverty

b.Being a victim of physical abuse

c.A homosexual orientation

d.A history of behavioral problems

42.

Why is depression difficult to diagnose in older adults?a.There are no diagnostic criteria for diagnosing depression in the elderly.

b.As nearly all older depressed individuals commit suicide, there are few depressed individuals left to diagnose.

c.Many of the diagnostic symptoms are similar to normal losses associated with aging.

d.Normal cognitive loss associated with aging makes it hard for older people to answer questions about their mental state.

43.

Which statement concerning psychopathology in adulthood is true?a.A major challenge in treating older individuals with depression is getting them to seek treatment.

b.The elderly are highly likely to be overdiagnosed with depression.

c.Treatments for depression in adulthood are highly ineffective.

d.Depression symptoms in older adulthood are so different from young adulthood that different DSM criteria are used in its detection.

44.

Dementia is best defined asa.an inevitable, normal change in the brain with age.

b.a sudden loss of memory and intelligence.

c.a one-time period of significant disorientation.

d.a progressive loss of neural functioning.

45.

What is the most common form of dementia?a.Down syndrome

b.Parkinson’s disease

c.Alzheimer’s disease

d.Vascular dementia

46.

What brain change is best associated with Alzheimer’s disease?a.Excessive quantities of the metal mercury

b.Neurofibrillary bundles surrounding alpha-amyloid

c.Senile plaque

d.Excessive levels of the neurotransmitter dopamine

47.

Beta-amyloids are founda.in large quantity in individuals with vascular dementia.

b.to contribute significantly to the development of anorexia nervosa.

c.only in clinically depressed individuals.

d.at the core of senile plaques.

48.

Alzheimer’s disease is best described asa.nonprogressive and incurable.

b.progressive and incurable.

c.progressive and curable.

d.nonprogressive and curable.

49.

The first sign of Alzheimer’s disease is typicallya.trouble remembering recently learned verbal material.

b.difficulty on recognition tasks.

c.a loss of language skills.

d.personality changes.

50.

A gene segment on the _____ chromosome has been implicated as a likely cause of late-onset Alzheimer’s disease.a.24th

b.19th

c.9th

d.14th

51.

How does the ApoE4 gene appear to contribute to the development of Alzheimer’s disease?a.By making the brain more susceptible to damage from a blow to the head

b.By decreasing blood flow to the prefrontal lobe

c.Through the creation of new synapses within the brain

d.Through an increased buildup of beta-amyloid

52.

The extra “brain power” that individuals can sometimes rely on when disease begins to take a toll on their brain functioning is referred to asa.mirroring neurons.

b.ruminative coping.

c.cognitive reserve.

d.reversed roles.

53.

Drugs like Aricept and Namenda that are currently used to treat Alzheimer’s disease tend toa.positively impact cognitive functioning, reduce behavioral problems and slow the progression of the disease.

b.positively impact behavioral problems but have little impact on cognitive functioning.

c.positively impact cognitive functioning and reduce behavioral problems but do not slow the progression of the disease.

d.have little measureable impact on behavioral or cognitive abilities.

54.

Current treatments being investigated for Alzheimer’s disease includea.drugs to enhance the production of beta-amyloids.

b.injections of Leva-dopa to replace levels of dopamine in the brain.

c.antioxidants like vitamin E and C.

d.use of stimulants like methylphenidate.

55.

What is the second most common type of dementia?a.vascular dementia

b.Parkinson’s disease

c.Down syndrome

d.Alzheimer’s disease

56.

It appears as if the same lifestyle factors that contribute to the development of _____ also increase the risk for vascular dementia.a.Asperger syndrome

b.cerebrovascualr disease

c.ADHD

d.respiratory failure

57.

Vascular dementiaa.is a slowly progressive deterioration of memory and thinking skills.

b.results from a series of small strokes, each adding rather quickly to the observed deterioration.

c.has a very powerful genetic basis.

d.results from taking medications or having a poor diet and can be reversed when these problems are corrected.

58.

A key difference between Alzheimer’s disease and vascular dementia is that vascular dementia is more stronglya.associated with delirium.

b.influenced by lifestyle choices.

c.influenced by genetic factors.

d.associated with dementia.

59.

Delirium is best defined asa.a normal part of the aging process.

b.incurable.

c.another term for dementia.

d.a reversible state of confusion and disorientation.

60.

Due to their mental slowness, elderly adults who are _____ are frequently misdiagnosed with delirium.a.depressed

b.autistic

c.ADHD

d.mentally retarded

Assignment: Psy 370 Ch. 8 MemoryStudent: JooYeon YooTake Details

1.Correct answer:d

Your answer:

In the information-processing model, the purpose of the sensory register is toa.retrieve data from short-term memory.

b.control the activities of long-term memory.

c.develop strategies for storing encoded data.

d.briefly hold a piece of information for possible processing.

2.Correct answer:b

Your answer:

Information typically stays in _____ for the briefest amount of time.a.short-term memory

b.sensory register

c.long-term memory

d.working memory

3.Correct answer:c

Your answer:

Which is the best description of a typical short-term memory?a.Fairly long duration (minutes) and small capacity (seven or so items)

b.Fairly brief duration (seconds) and large capacity (seventy or so items)

c.Fairly brief duration (seconds) and small capacity (seven or so items)

d.Fairly long duration (minutes) and large capacity (seventy or so items)

4.Correct answer:a

Your answer:

Ethel looks up the phone number of a gas station and remembers it just long enough to walk over to the telephone and dial. When she is dialing, the information is contained in hera.short-term memory.

b.metamemory.

c.sensory register.

d.long-term memory.

5.Correct answer:a

Your answer:

The main distinction between short-term memory and working memory is that working memory isa.actively processed.

b.unconscious.

c.sensory based.

d.larger.

6.Correct answer:d

Your answer:

Information is stored in _____ memory for a relatively permanent period of time.a.working

b.sensory

c.short-term

d.long-term

7.Correct answer:b

Your answer:

Which statement concerning memory is true?a.Short-term memory has a much larger storage capacity than long-term memory.

b.Working-term memory provides a temporary space for processing information.

c.Long-term memory appears not to exist until around age two years.

d.The sensory register is located in long-term memory.

8.Correct answer:a

Your answer:

Cognitive theorists suggest that the most likely order of the process of memory when information is being processed for the first time would bea.encoding, consolidation, storage, retrieval.

b.retrieval, encoding, consolidation, storage.

c.consolidation, storage, encoding, retrieval.

d.storage, retrieval, encoding, consolidation.

9.Correct answer:d

Your answer:

Encoding is best described as the process ofa.cued recall.

b.uncued recall.

c.taking information out of the system.

d.putting information into the system.

10.Correct answer:a

Your answer:

The process during which information is organized into a form suitable for long-term storage is calleda.consolidation.

b.recognition.

c.utilization.

d.retrieval.

11.Correct answer:b

Your answer:

When information is taken out of long-term memory, it is beinga.scripted.

b.retrieved.

c.stored.

d.encoded.

12.Correct answer:d

Your answer:

On a recognition task, a persona.is not presented with the correct answer but is given a hint.

b.is neither presented with the correct answer nor given a hint.

c.must generate the answer completely on his or her own.

d.is presented with a list of alternatives that includes the correct answer.

13.Correct answer:a

Your answer:

On a pure recall memory task,a.no memory cues/aids are presented.

b.a correct answer is presented by itself.

c.a few hints are presented.

d.a correct answer is presented along with a few distracters.

14.Correct answer:d

Your answer:

On a(n) ____ memory task, a person trying to remember some information is given a hint but not the entire answer.a.implicit

b.recall

c.episodic

d.cued-recall

15.Correct answer:c

Your answer:

A memory that occurs without any conscious effort is best referred to asa.scripted.

b.autobiographical.

c.implicit.

d.explicit.

16.Correct answer:a

Your answer:

An explicit memorya.is deliberately recalled.

b.always has a sexual overtone.

c.occurs only after a hint has been given.

d.involves recalling behaviors but not ideas.

17.Correct answer:b

Your answer:

Implicit memory is to explicit memory asa.retrieval is to storage.

b.unintentional is to deliberate.

c.cued it to uncued.

d.effort is to automatic.

18.Correct answer:a

Your answer:

Semantic memories are fora.general facts.

b.early childhood experiences.

c.specific events.

d.how to perform an action.

19.Correct answer:b

Your answer:

_____ memories always involve personal experiences.a.Procedural

b.Episodic

c.Cued-recall

d.Implicit

20.Correct answer:a

Your answer:

Which is the best example of an episodic memory?a.Recalling your 21st birthday party

b.Recalling the words to the song “Happy Birthday”

c.Naming four kinds of ice cream

d.Remembering how to light a candle

21.Correct answer:b

Your answer:

The fact that some forms of amnesia destroy explicit memory but not implicit memory indicates thata.long-term memory lacks organization.

b.these forms of memory operate independently.

c.implicit memory is learned and explicit is innate.

d.explicit memory develops earlier than implicit memory.

22.Correct answer:c

Your answer:

Research has indicated that procedural memory is mediated by the straitum. This means thata.language plays a significant role in the development of memory.

b.memory requires cognitive effort.

c.the brain is involved in processing memory.

d.only information that is attended to is recalled.

23.Correct answer:d

Your answer:

Carlos has experienced significant damage to his hippocampus (an area located in the medial temporal lobe). How would this most likely impact his memory?a.He would not be able to recall events from his childhood.

b.He would not be able to recall who he is.

c.He could recall past events but not past factual information.

d.He would have trouble creating new episodic memories.

24.Correct answer:b

Your answer:

Which statement concerning memory is true?a.Implicit memory increases in capacity from infancy through adulthood then declines, while explicit memory capacity peaks in childhood then declines.

b.Explicit memory increases in capacity from infancy through adulthood then declines, while implicit memory capacity is constant across the lifespan.

c.Implicit memory increases in capacity from infancy through adulthood then declines, while explicit memory capacity is constant across the lifespan.

d.Explicit memory increases in capacity from infancy through adulthood then declines, while implicit memory capacity peaks in childhood then declines.

25.Correct answer:b

Your answer:

Habituation is best described as learninga.a reflex.

b.not to respond.

c.in reaction to reinforcement.

d.a new response.

26.Correct answer:c

Your answer:

Haynes, Rovee-Collier (1997) research on infant memory involved recording kicking behavior when a ribbon was tied to the infant’s foot, demonstrating that young children have _____ memory.a.elaborative

b.repressed

c.recall

d.implicit

27.Correct answer:c

Your answer:

The research study of infant memory involving a ribbon tied to an infant’s foot relied heavily on _____ conditioning techniques.a.classical

b.social-learning-theory

c.operant

d.humanistic

28.Correct answer:c

Your answer:

Older children can learn faster and remember more than younger children because older children typically show a significant increase ina.the capacity of long-term memory.

b.the size of their sensory register.

c.working-memory space available for constructive use.

d.childhood amnesia.

29.Correct answer:b

Your answer:

Case suggests that a preschooler’s tendency to center (as described by Piaget) is likely related to limited _____ memory size.a.implicit

b.working

c.long-term

d.sensory

30.Correct answer:b

Your answer:

Which best describes the memory strategy of rehearsal?a.Take original information, expand on it, and make connections to existing memories.

b.Repeat to self over and over.

c.See it and be it.

d.Organize into meaningful categories, then memorize.

31.Correct answer:c

Your answer:

Which memory strategy is being used when a long number is memorized by breaking it into manageable subunits each containing three digits?a.Rehearsal

b.Implicit memory

c.Chunking

d.Method of loci

32.Correct answer:c

Your answer:

Which best describes the memory strategy of organization?a.Take original information, expand on it, and make connections to existing memories.

b.Repeat to self over and over.

c.Classify into meaningful categories, then memorize.

d.See it and be it.

33.Correct answer:c

Your answer:

The best example of elaboration isa.consolidating “red” and “green” into a color group and “chair” and “table” into a furniture group.

b.seeing the color red but perceiving the color green.

c.noting that the red chair and the green piano remind you of last year’s Christmas party.

d.repeating “red, chair, dog” several times.

34.Correct answer:d

Your answer:

Wayne has trouble remembering the last four digits of his new phone number (4422) until he makes the connection that the last two digits are exactly half of the first two digits. Once he makes this connection, he has no trouble remembering the number! This best demonstrates the memory concept ofa.rehearsal.

b.organization.

c.chunking.

d.elaboration.

35.Correct answer:c

Your answer:

Which is NOT an example of metamemory?a.Knowing which memory strategies are most effective for you

b.Knowing which memorization tasks are most difficult for you

c.Knowing the difference between metaphysics and meta-analysis

d.Being able to plan and control your memory processes as you learn

36.Correct answer:c

Your answer:

Metamemory awareness is most likely to be displayed in young childrena.who have never been in situations in which they had to remember something and they are facing a task that they find irrelevant.

b.who have often been in situations in which they had to remember something and they are facing a task that they find irrelevant.

c.who have often been in situations in which they had to remember something and they are facing a task that they find relevant.

d.who have never been in situations in which they had to remember something and they are facing a task that they find relevant.

37.Correct answer:c

Your answer:

A person’s knowledge base is defined asa.the difference between what he or she knows and what he or she can acquire with guided participation.

b.unconscious awareness of an event.

c.how much the person knows about a topic.

d.the rate at which he or she can solve a task.

38.Correct answer:d

Your answer:

An autobiographical memory is a memory fora.other people’s lives.

b.historical events that occurred before your conception.

c.future possible events in one’s life.

d.past personal experiences.

39.Correct answer:c

Your answer:

As a typical college student, research indicates that Hanna would be most likely toshift her focus to _____ if she suddenly found herself pressed for time when studying for an exam.a.another subject

b.the most difficult material

c.the easiest material

d.friends

40.Correct answer:d

Your answer:

If information fails to be encoded it is _____ to remember.a.easy

b.very difficult

c.a little difficult

d.impossible

41.Correct answer:c

Your answer:

Research on autobiographical memory in adulthood has shown that the more _____ an event, the better it will later be recalled.a.distant

b.emotional

c.unique

d.negative

42.Correct answer:c

Your answer:

_____ events tend to have the greatest likelihood of being recalled after the event.a.Only positive emotional

b.Non-emotional

c.Both positive and negative emotional

d.Only negative emotional

43.Correct answer:d

Your answer:

Which statement concerning individuals with mild cognitive impairment is FALSE?a.They will display deficits in other cognitive areas

b.They will have difficulty learning

c.They will be forgetful

d.They will show all the symptoms of dementia

44.Correct answer:a

Your answer:

With which of the following tasks would older adults have the LEAST problem?a.A memory task where they can use well-practiced memory strategies

b.A timed memory task

c.A task where they are asked to recall rather than recognize names

d.A memory task where the material is unfamiliar

45.Correct answer:c

Your answer:

Which statement concerning memory strategies and basic processing capacities with age is true?a.Memory problems in adulthood are more likely the result of original encoding and not retrieval.

b.Holding negative stereotypes concerning memory ability actually leads to improved memory abilities in older adulthood.

c.Limitations in working memory in older adulthood may b

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Question 1 (Multiple Choice Worth 5 points)

[LC]

Read these lines from Fredrick Douglass’s speech “What to The Slave Is the Fourth of July?”

But I fancy I hear some one of my audience say, it is just in this circumstance that you and your brother abolitionists fail to make a favorable impression on the public mind.

Which word is most similar to how fancy is used here?

Accept Believe Desire Insist

Question 2 (Multiple Choice Worth 5 points)

[LC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

Upon my entrance, Usher rose from a sofa on which he had been lying at full length, and greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality—of the constrained effort of the ennuyé1 man of the world. A glance, however, at his countenance convinced me of his perfect sincerity. We sat down; and for some moments, while he spoke not, I gazed upon him with a feeling half of pity, half of awe. Surely, man had never before so terribly altered, in so brief a period, as had Roderick Usher! It was with difficulty that I could bring myself to admit the identity of the wan being before me with the companion of my early boyhood. Yet the character of his face had been at all times remarkable. A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten. And now in the mere exaggeration of the prevailing character of these features, and of the expression they were wont to convey, lay so much of change that I doubted to whom I spoke. The now ghastly pallor of the skin, and the now miraculous lustre of the eye, above all things startled and even awed me. The silken hair, too, had been suffered to grow all unheeded, and as, in its wild gossamer texture, it floated rather than fell about the face, I could not, even with effort, connect its Arabesque expression with any idea of simple humanity.

1Bored

What is the narrator’s relationship to Roderick Usher?

They were enemies from long ago. They were childhood friends. They were long lost brothers. They were competing businessmen.

Question 3 (Multiple Choice Worth 5 points)

[LC]

Read these two sentences:

• The research suggests we may have little time left to help the big cats of the world.
• Our progress in all major habitats has been very encouraging.

Which transition word correctly links the two sentences? Additionally Consequently Furthermore However

Question 4 (Multiple Choice Worth 5 points)

[LC]

Which sentence correctly uses a hyphen?

The teacher was much-loved. The determined-talented band played. The strawberries were chocolate-covered. The well-known artist arrived.

Question 5 (Multiple Choice Worth 5 points)

[MC]

Which sentence correctly uses hyphens?

The accountant gave the tables a quick-glance of review. The sugared-fruit was popular at first but then overlooked. The quick-thinking, well-dressed speaker shocked the audience. The actress was still fretted-over before her stage entrance.

Question 6 (Multiple Choice Worth 5 points)

[MC]

Which of the following would be most relevant to a research paper exploring the benefits of schools growing their own food?

Interviews with a master gardener and a landscape designer Lists of plants that are easy to grow and very nutritious Studies comparing the costs of purchasing produce to growing it Testimony from a group of interested students

Question 7 (Multiple Choice Worth 5 points)

[MC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

Upon my entrance, Usher rose from a sofa on which he had been lying at full length, and greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality—of the constrained effort of the ennuyé1 man of the world. A glance, however, at his countenance convinced me of his perfect sincerity. We sat down; and for some moments, while he spoke not, I gazed upon him with a feeling half of pity, half of awe. Surely, man had never before so terribly altered, in so brief a period, as had Roderick Usher! It was with difficulty that I could bring myself to admit the identity of the wan being before me with the companion of my early boyhood. Yet the character of his face had been at all times remarkable. A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten. And now in the mere exaggeration of the prevailing character of these features, and of the expression they were wont to convey, lay so much of change that I doubted to whom I spoke. The now ghastly pallor of the skin, and the now miraculous lustre of the eye, above all things startled and even awed me. The silken hair, too, had been suffered to grow all unheeded, and as, in its wild gossamer texture, it floated rather than fell about the face, I could not, even with effort, connect its Arabesque expression with any idea of simple humanity.

In the manner of my friend I was at once struck with an incoherence—an inconsistency; and I soon found this to arise from a series of feeble and futile struggles to overcome an habitual trepidancy—an excessive nervous agitation. For something of this nature I had indeed been prepared, no less by his letter, than by reminiscences of certain boyish traits, and by conclusions deduced from his peculiar physical conformation and temperament. His action was alternately vivacious and sullen. His voice varied rapidly from a tremulous indecision to that species of energetic concision—that abrupt, weighty, unhurried, and hollow-sounding enunciation—that leaden, self-balanced and perfectly modulated guttural utterance.

1Bored

Which words and phrases from the text illustrate the narrator’s first impression of Usher?

Stern, deep, irredeemable Sufficiently distinct, wild gossamer Abrupt, weighty, unhurried Vivacious warmth, perfect sincerity

Question 8 (Multiple Choice Worth 5 points)

[LC]

WHAT TO THE SLAVE IS THE FOURTH OF JULY?

By Frederick Douglass

Extract from an Oration, at Rochester, July 5, 1852

Fellow-Citizens—Pardon me, and allow me to ask, why am I called upon to speak here to-day? What have I, or those I represent, to do with your national independence? Are the great principles of political freedom and of natural justice, embodied in that Declaration of Independence, extended to us? and am I, therefore, called upon to bring our humble offering to the national altar, and to confess the benefits, and express devout gratitude for the blessings, resulting from your independence to us?

But, such is not the state of the case. I say it with a sad sense of the disparity between us. I am not included within the pale of this glorious anniversary! Your high independence only reveals the immeasurable distance between us. The blessings in which you this day rejoice, are not enjoyed in common. The rich inheritance of justice, liberty, prosperity, and independence, bequeathed by your fathers, is shared by you, not by me. The sunlight that brought life and healing to you, has brought stripes and death to me. This Fourth of July is yours, not mine. You may rejoice, I must mourn. To drag a man in fetters into the grand illuminated temple of liberty, and call upon him to join you in joyous anthems, were inhuman mockery and sacrilegious irony. Do you mean, citizens, to mock me, by asking me to speak to-day? . . .

Fellow-citizens, above your national, tumultuous joy, I hear the mournful wail of millions, whose chains, heavy and grievous yesterday, are to-day rendered more intolerable by the jubilant shouts that reach them. If I do forget, if I do not faithfully remember those bleeding children of sorrow this day, “may my right hand forget her cunning, and may my tongue cleave to the roof of my mouth!” To forget them, to pass lightly over their wrongs, and to chime in with the popular theme, would be treason most scandalous and shocking, and would make me a reproach before God and the world. My subject, then, fellow-citizens, is AMERICAN SLAVERY. I shall see this day and its popular characteristics from the slave’s point of view. Standing there, identified with the American bondman, making his wrongs mine, I do not hesitate to declare, with all my soul, that the character and conduct of this nation never looked blacker to me than on this Fourth of July. Whether we turn to the declarations of the past, or to the professions of the present, the conduct of the nation seems equally hideous and revolting.

For whom does Douglass claim to speak in this speech?

Slaves Slave owners All Americans Men

Question 9 (Multiple Choice Worth 5 points)

[LC]

WHAT TO THE SLAVE IS THE FOURTH OF JULY?

By Frederick Douglass

Extract from an Oration, at Rochester, July 5, 1852

Fellow-Citizens—Pardon me, and allow me to ask, why am I called upon to speak here to-day? What have I, or those I represent, to do with your national independence? Are the great principles of political freedom and of natural justice, embodied in that Declaration of Independence, extended to us? and am I, therefore, called upon to bring our humble offering to the national altar, and to confess the benefits, and express devout gratitude for the blessings, resulting from your independence to us?

But, such is not the state of the case. I say it with a sad sense of the disparity between us. I am not included within the pale of this glorious anniversary! Your high independence only reveals the immeasurable distance between us. The blessings in which you this day rejoice, are not enjoyed in common. The rich inheritance of justice, liberty, prosperity, and independence, bequeathed by your fathers, is shared by you, not by me. The sunlight that brought life and healing to you, has brought stripes and death to me. This Fourth of July is yours, not mine. You may rejoice, I must mourn. To drag a man in fetters into the grand illuminated temple of liberty, and call upon him to join you in joyous anthems, were inhuman mockery and sacrilegious irony. Do you mean, citizens, to mock me, by asking me to speak to-day? . . .

Fellow-citizens, above your national, tumultuous joy, I hear the mournful wail of millions, whose chains, heavy and grievous yesterday, are to-day rendered more intolerable by the jubilant shouts that reach them. If I do forget, if I do not faithfully remember those bleeding children of sorrow this day, “may my right hand forget her cunning, and may my tongue cleave to the roof of my mouth!” To forget them, to pass lightly over their wrongs, and to chime in with the popular theme, would be treason most scandalous and shocking, and would make me a reproach before God and the world. My subject, then, fellow-citizens, is AMERICAN SLAVERY. I shall see this day and its popular characteristics from the slave’s point of view. Standing there, identified with the American bondman, aking his wrongs mine, I do not hesitate to declare, with all my soul, that the character and conduct of this nation never looked blacker to me than on this Fourth of July. Whether we turn to the declarations of the past, or to the professions of the present, the conduct of the nation seems equally hideous and revolting.

Why are the citizens experiencing “national, tumultuous joy,” as Douglass describes it?

It is a national holiday They have gone to war The stocks have risen A new President has been elected

Question 10 (Multiple Choice Worth 5 points)

[MC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

Upon my entrance, Usher rose from a sofa on which he had been lying at full length, and greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality—of the constrained effort of the ennuyé1 man of the world. A glance, however, at his countenance convinced me of his perfect sincerity. We sat down; and for some moments, while he spoke not, I gazed upon him with a feeling half of pity, half of awe. Surely, man had never before so terribly altered, in so brief a period, as had Roderick Usher! It was with difficulty that I could bring myself to admit the identity of the wan being before me with the companion of my early boyhood. Yet the character of his face had been at all times remarkable. A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten. And now in the mere exaggeration of the prevailing character of these features, and of the expression they were wont to convey, lay so much of change that I doubted to whom I spoke. The now ghastly pallor of the skin, and the now miraculous lustre of the eye, above all things startled and even awed me. The silken hair, too, had been suffered to grow all unheeded, and as, in its wild gossamer texture, it floated rather than fell about the face, I could not, even with effort, connect its Arabesque expression with any idea of simple humanity.

In the manner of my friend I was at once struck with an incoherence—an inconsistency; and I soon found this to arise from a series of feeble and futile struggles to overcome an habitual trepidancy—an excessive nervous agitation. For something of this nature I had indeed been prepared, no less by his letter, than by reminiscences of certain boyish traits, and by conclusions deduced from his peculiar physical conformation and temperament. His action was alternately vivacious and sullen. His voice varied rapidly from a tremulous indecision to that species of energetic concision—that abrupt, weighty, unhurried, and hollow-sounding enunciation—that leaden, self-balanced and perfectly modulated guttural utterance.

1Bored

In this passage, the narrator says that Roderick Usher “greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality…”

What convinced the narrator that Usher was not pretending?

The narrator felt sorry for Usher. The narrator saw the expression on Usher’s face. Usher did not speak to the narrator. Usher stood up from the sofa.

Question 11 (Multiple Choice Worth 5 points)

[LC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

The room in which I found myself was very large and lofty. The windows were long, narrow, and pointed, and at so vast a distance from the black oaken floor as to be altogether inaccessible from within. Feeble gleams of encrimsoned light made their way through the trellised panes, and served to render sufficiently distinct the more prominent objects around; the eye, however, struggled in vain to reach the remoter angles of the chamber, or the recesses of the vaulted and fretted ceiling. Dark draperies hung upon the walls. The general furniture was profuse, comfortless, antique, and tattered. Many books and musical instruments lay scattered about, but failed to give any vitality to the scene. I felt that I breathed an atmosphere of sorrow. An air of stern, deep, and irredeemable gloom hung over and pervaded all.

Which of the following statements is most likely true about the narrator?

He feels glad to be where he is. He wants to move into this house. He feels sad looking at this room. He is angry with someone who lives here.

Question 12 (Multiple Choice Worth 5 points)

[MC]

Read these lines from “Fall of the House of Usher” by Edgar Allan Poe:

I was by no means certain that he had noticed the sounds in question; although, assuredly, a strange alteration had, during the last few minutes, taken place in his demeanor.

Which of the following correctly defines the word assuredly as it is used here?

With hesitation Without doubt With confusion Without understanding

Question 13 (Multiple Choice Worth 5 points)

[LC]

Read the sentence and answer the following question:

Our assignment this week directs us to learn about chemical compounds and their properties.

Which words should be replaced with something more precise?

Learn about Chemical compounds Directs us Their properties

Question 14 (Multiple Choice Worth 5 points)

[LC]

Read the sentence and answer the following question:

The things you said in your speech last week have inspired me to take action in my own community.

Which word should be replaced with something more precise?

Inspired Action Things Community

Question 15 (Multiple Choice Worth 5 points)

[MC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

In the manner of my friend I was at once struck with an incoherence—an inconsistency; and I soon found this to arise from a series of feeble and futile struggles to overcome an habitual trepidancy—an excessive nervous agitation. For something of this nature I had indeed been prepared, no less by his letter, than by reminiscences of certain boyish traits, and by conclusions deduced from his peculiar physical conformation and temperament. His action was alternately vivacious and sullen. His voice varied rapidly from a tremulous indecision to that species of energetic concision—that abrupt, weighty, unhurried, and hollow-sounding enunciation—that leaden, self-balanced and perfectly modulated guttural utterance.

Which of the following correctly describes the main purpose of the narrative in this paragraph?

Developing character Creating conflict Creating setting Resolving conflict

Question 16 (Multiple Choice Worth 5 points)

[LC]

WHAT TO THE SLAVE IS THE FOURTH OF JULY?

By Frederick Douglass

Extract from an Oration, at Rochester, July 5, 1852

Fellow-Citizens—Pardon me, and allow me to ask, why am I called upon to speak here to-day? What have I, or those I represent, to do with your national independence? Are the great principles of political freedom and of natural justice, embodied in that Declaration of Independence, extended to us? and am I, therefore, called upon to bring our humble offering to the national altar, and to confess the benefits, and express devout gratitude for the blessings, resulting from your independence to us?

But, such is not the state of the case. I say it with a sad sense of the disparity between us. I am not included within the pale of this glorious anniversary! Your high independence only reveals the immeasurable distance between us. The blessings in which you this day rejoice, are not enjoyed in common. The rich inheritance of justice, liberty, prosperity, and independence, bequeathed by your fathers, is shared by you, not by me. The sunlight that brought life and healing to you, has brought stripes and death to me. This Fourth of July is yours, not mine. You may rejoice, I must mourn. To drag a man in fetters into the grand illuminated temple of liberty, and call upon him to join you in joyous anthems, were inhuman mockery and sacrilegious irony. Do you mean, citizens, to mock me, by asking me to speak to-day? . . .

Fellow-citizens, above your national, tumultuous joy, I hear the mournful wail of millions, whose chains, heavy and grievous yesterday, are to-day rendered more intolerable by the jubilant shouts that reach them. If I do forget, if I do not faithfully remember those bleeding children of sorrow this day, “may my right hand forget her cunning, and may my tongue cleave to the roof of my mouth!” To forget them, to pass lightly over their wrongs, and to chime in with the popular theme, would be treason most scandalous and shocking, and would make me a reproach before God and the world. My subject, then, fellow-citizens, is AMERICAN SLAVERY. I shall see this day and its popular characteristics from the slave’s point of view. Standing there, identified with the American bondman, making his wrongs mine, I do not hesitate to declare, with all my soul, that the character and conduct of this nation never looked blacker to me than on this Fourth of July. Whether we turn to the declarations of the past, or to the professions of the present, the conduct of the nation seems equally hideous and revolting.

Read this line from the text:

This Fourth of July is yours, not mine. You may rejoice, I must mourn.

Which of the following is true of this excerpt?

He contrasts ideas to show his own sadness. He contrasts ideas to show his own happiness. He compares ideas to show how everyone is the same. He compares ideas to show similar life experiences.

Question 17 (Multiple Choice Worth 5 points)

[MC]

Read this line from “The Fall of the House of Usher” by Edgar Allen Poe:

A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten.

Which group of words from the sentence above gives clues to the meaning of the word countenance?

Beautiful, delicate, web-like Energy, softness, expansion Eye, lips, nose Luminous, thin, pallid

Question 18 (Multiple Choice Worth 5 points)

[LC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

Upon my entrance, Usher rose from a sofa on which he had been lying at full length, and greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality—of the constrained effort of the ennuyé1 man of the world. A glance, however, at his countenance convinced me of his perfect sincerity. We sat down; an for some moments, while he spoke not, I gazed upon him with a feeling half of pity, half of awe. Surely, man had never before so terribly altered, in so brief a period, as had Roderick Usher! It was with difficulty that I could bring myself to admit the identity of the wan being before me with the companion of my early boyhood. Yet the character of his face had been at all times remarkable. A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten. And now in the mere exaggeration of the prevailing character of these features, and of the expression they were wont to convey, lay so much of change that I doubted to whom I spoke. The now ghastly pallor of the skin, and the now miraculous lustre of the eye, above all things startled and even awed me. The silken hair, too, had been suffered to grow all unheeded, and as, in its wild gossamer texture, it floated rather than fell about the face, I could not, even with effort, connect its Arabesque expression with any idea of simple humanity.

1Bored

Which sentence summarizes the meaning of this excerpt?

His friend looked youthful. His friend looked intelligent. His friend looked furious. His friend looked unhealthy.

Question 19 (Multiple Choice Worth 5 points)

[LC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

Upon my entrance, Usher rose from a sofa on which he had been lying at full length, and greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality—of the constrained effort of the ennuyé1 man of the world. A glance, however, at his countenance convinced me of his perfect sincerity. We sat down; and for some moments, while he spoke not, I gazed upon him with a feeling half of pity, half of awe. Surely, man had never before so terribly altered, in so brief a period, as had Roderick Usher! It was with difficulty that I could bring myself to admit the identity of the wan being before me with the companion of my early boyhood. Yet the character of his face had been at all times remarkable. A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten. And now in the mere exaggeration of the prevailing character of these features, and of the expression they were wont to convey, lay so much of change that I doubted to whom I spoke. The now ghastly pallor of the skin, and the now miraculous lustre of the eye, above all things startled and even awed me. The silken hair, too, had been suffered to grow all unheeded, and as, in its wild gossamer texture, it floated rather than fell about the face, I could not, even with effort, connect its Arabesque expression with any idea of simple humanity.

In the manner of my friend I was at once struck with an incoherence—an inconsistency; and I soon found this to arise from a series of feeble and futile struggles to overcome an habitual trepidancy—an excessive nervous agitation. For something of this nature I had indeed been prepared, no less by his letter, than by reminiscences of certain boyish traits, and by conclusions deduced from his peculiar physical conformation and temperament. His action was alternately vivacious and sullen. His voice varied rapidly from a tremulous indecision to that species of energetic concision—that abrupt, weighty, unhurried, and hollow-sounding enunciation—that leaden, self-balanced and perfectly modulated guttural utterance.

1Bored

Read this line from the text:

His action was alternately vivacious and sullen.

Pay close attention to the words in this sentence. What meaning is the author trying to convey?

Usher was always unhappy. Usher was always happy. Usher seemed sometimes happy and sometimes sad. Usher hid his emotions and looked still.

Question 20 (Multiple Choice Worth 5 points)

[MC]

Ricardo has a working thesis and a large collection of resources related to it for his research paper. What is the most useful next step in the writing process for Ricardo?

Conduct further research to consider a different thesis statement and focus. Draft an introductory and concluding paragraph for the research. Group the information into a logical pattern and connect to the thesis. Outline the entire paper, using the research to connect key ideas.

Question 21 (Multiple Choice Worth 5 points)

[MC]

Which sentence below most strongly suggests the speaker is not responsible for the events?

It was I who pulled the string that moved the chair that caused you to fall. You fell because I pulled the string which moved the chair. The chair moved and you fell because I pulled the string. The chair moved after the string I was holding was pulled.

Question 22 (Multiple Choice Worth 5 points)

[LC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

The room in which I found myself was very large and lofty. The windows were long, narrow, and pointed, and at so vast a distance from the black oaken floor as to be altogether inaccessible from within. Feeble gleams of encrimsoned light made their way through the trellised panes, and served to render sufficiently distinct the more prominent objects around; the eye, however, struggled in vain to reach the remoter angles of the chamber, or the recesses of the vaulted and fretted ceiling. Dark draperies hung upon the walls. The general furniture was profuse, comfortless, antique, and tattered. Many books and musical instruments lay scattered about, but failed to give any vitality to the scene. I felt that I breathed an atmosphere of sorrow. An air of stern, deep, and irredeemable gloom hung over and pervaded all.

Which words from this paragraph help create an unsettling mood?

trellised panes sorrow, failed instruments, atmosphere oaken floor

Question 23 (Multiple Choice Worth 5 points)

[LC]

Fall of the House of Usher, excerpt

By Edgar Allan Poe

Upon my entrance, Usher rose from a sofa on which he had been lying at full length, and greeted me with a vivacious warmth which had much in it, I at first thought, of an overdone cordiality—of the constrained effort of the ennuyé1 man of the world. A glance, however, at his countenance convinced me of his perfect sincerity. We sat down; and for some moments, while he spoke not, I gazed upon him with a feeling half of pity, half of awe. Surely, man had never before so terribly altered, in so brief a period, as had Roderick Usher! It was with difficulty that I could bring myself to admit the identity of the wan being before me with the companion of my early boyhood. Yet the character of his face had been at all times remarkable. A cadaverousness of complexion; an eye large, liquid, and luminous beyond comparison; lips somewhat thin and very pallid, but of a surpassingly beautiful curve; a nose of a delicate Hebrew model, but with a breadth of nostril unusual in similar formations; a finely moulded chin, speaking, in its want of prominence, of a want of moral energy; hair of a more than web-like softness and tenuity;—these features, with an inordinate expansion above the regions of the temple, made up altogether a countenance not easily to be forgotten. And now in the mere exaggeration of the prevailing character of these features, and of the expression they were wont to convey, lay so much of change that I doubted to whom I spoke. The now ghastly pallor of the skin, and the now miraculous lustre of the eye, above all things startled and even awed me. The silken hair, too, had been suffered to grow all unheeded, and as, in its wild gossamer texture, it floated rather than fell about the face, I could not, even with effort, connect its Arabesque expression with any idea of simple humanity.

In the manner of my friend I was at once struck with an incoherence—an inconsistency; and I soon found this to arise from a series of feeble and futile struggles to overcome an habitual trepidancy—an excessive nervous agitation. For something of this nature I had indeed been prepared, n

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