If $432 invested today yields $450 in a year's time, what is the discount factor?
A) 0.10
B) 0.96
C) 1.96
D) 1.92
Answer: B
You might also like to view...
A survey conducted at a busy pedestrian intersection is an example of:
A) convenience sampling B) judgment sampling C) referral sampling D) quota sampling E) hallway sampling
Which is true?
A. In order to be successful, service desk analysts need to understand the goals of the service desk, but understanding the goals of the department and the company as a whole, are management responsibilities. B. In order to be successful, service desk analysts need to understand the goals of the service desk and their department, but understanding the goals of the company as a whole, are management responsibilities. C. In order to be successful, service desk analysts need to understand the goals of the service desk, their department, and the goals of the company as a whole. D. In order to be successful, service desk analysts need to understand the key performance indicators (KPIs) and critical success factors (CSFs) requested by the customers.
A machine was purchased two years ago for $120,000 and can be sold for $50,000 today. The machine has been depreciated using the MACRS 5-year recovery period and the firm pays 40 percent taxes on both ordinary income and capital gains
(a) Compute recaptured depreciation and capital gain (loss), if any. (b) Find the firm's tax liability.
When bankruptcy is added to the M&M world of capital structure, which of the following statements is true as more debt is added to the financing mix of the company?
A) The interest tax shield is a benefit to equity holders, although they bear increasing risk. B) The advantage of the tax shield starts to be offset by financial distress costs. C) The WACC of the company starts to increase past a certain level of debt. D) All of the above