Why is the personal decision a financial manager makes as to whether to buy or to rent an apartment as a personal residence most like the professional decision that manager makes as to whether her firm should try to acquire a stake in a fast growing
new Internet-based company?
A) Both decisions involve the purchase of assets that are essential for the existence of the investor
B) Both decisions involve the rental of a useful asset.
C) Both decisions have the potential to affect the firm.
D) Both decisions should be made based upon the tradeoff benefits and costs across time.
Answer: D
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All of the following are basic strategies resulting from a portfolio analysis EXCEPT:
A. harvest B. build C. hold D. divest E. milk
Electronic chattel paper is a record of a right to payment or property that is stored in an electronic medium
Indicate whether the statement is true or false
Wrongful Interference. In 1963, Pacific Gas and Electric Co (PG&E) entered into a contract with the Placer County Water Agency (Agency) under which PG&E would purchase hydroelectric power from the Agency. The contract provided that the agreement would
terminate in the year 2013 or at the end of the year in which the Agency completed the retirement of its project bonds, whichever occurred first. As energy prices rose, the Agency wished it could terminate the contract and sell its hydroelectric power in a more favorable market, but it felt it could not do so without breaching its contract with PG&E. Bear Stearns & Co, an investment brokerage firm, approached the Agency and spent several years overcoming the Agency's resistance to making any effort to terminate the contract. Finally it succeeded, and in 1983 the Agency entered into an agreement with Bear Stearns in which Bear Stearns agreed to pay for legal, engineering, and marketing studies on the feasibility of terminating the power contract, in return for 15 percent of any resulting increase in the Agency's revenues above $2.5 million for twenty years. Bear Stearns retained legal counsel to draw up a plan by which the Agency could retire its project bonds and to litigate the question of whether the Agency could terminate the contract. PG&E sued Bear Stearns for tortious interference with PG&E's contract with the Agency. What will the court decide? Explain.
Which of the following is an example of a capital investment in real estate?
A) fixing a broken fence B) adding a room above the garage C) replacing faulty electrical wiring D) none of the above