Rational investor's are motivated to purchase an asset because of its
A) expected returns.
B) past returns.
C) emotional benefits.
D) all of the above.
Answer: A
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Regarding business products, which of the following is true?
A. A broad product assortment may be more important than low price to a buyer of supply items. B. Availability may be more important than low price to a buyer of repair items. C. Meeting specifications may be more important than low price to a buyer of component parts. D. Quality of service may be more important than low price to a buyer of professional services. E. All these answers are correct.
Public perception and reputation do not affect stock prices, which are strictly a function of
dividends and required returns. Indicate whether the statement is true or false
The outstanding bonds of The Purple Fiddle are priced at $898 and mature in nine years. These bonds have a 6 percent coupon and pay interest annually. The firm's tax rate is 35 percent. What is the firm's after-tax cost of debt?
A) 4.94 percent B) 5.24 percent C) 5.30 percent D) 7.18 percent E) 7.61 percent
Refer to Table 4-2. The Operating Profit Margin ratio for 2007 was approximately
A) 0.22. B) 0.17. C) 0.18. D) 0.12.