Three ways that savings can be transferred through the financial markets include all of the
following EXCEPT
A) indirect transfer using the investment banker.
B) indirect transfer using the venture capital firm.
C) indirect transfer using the financial intermediary.
D) direct transfer of funds.
B
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A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?
A) price discrimination B) odd-even pricing and price lining C) dynamic pricing and price lining D) reference pricing and value pricing E) dynamic pricing and loss leader pricing
The value of a financial asset is the ________
A) present value of all of the future cash flows that will be received B) sum of all previous cash flows received C) future value of just the capital gains but not the dividends D) present value of just the capital gains but not the dividends
In the year just past (Year 1 ) Kaos Corp had no debt. Today is January 1 of Year 2. Kaos is considering a plan to sell bonds worth $25B and use the proceeds to repurchase 2.5B shares (on the open market at $10/share)
If Kaos maintains this new level of debt in perpetuity, then what is the present value of the resulting interest tax shields? Assume that the debt is sold immediately, that the bonds are a perpetuity, and that interest is paid at the end of each year. Assume that the coupon rate on the bonds is 6% and that the tax rate is 15%. A) $0.23B B) $3.75B C) $6.0B D) $21.25B E) $25B
The evidence suggests technical analysts are not superior stock pickers
Indicate whether the statement is true or false