Interpreting the Level 1 point possible (graded) Which of the following is a correct interpretation of the (smallest) level of a test? 1. The level of a test is an upper bound on the type 1 error. 2. The level of a test is an upper bound on the type 2 error. 3. The level of a test is a random variable that depends on the sample. 4. The level of a test gives an upper bound on the worst-case probability of making an error under the null hypothesis.

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

The servers at gerry frasier's busy ice cream shop decided that putting more ice cream in the sundaes and cones would bring back more customers. after three months, gerry was surprised to discover that his profit had

Money management refers to: question 1 options: preparing personal financial statements. day-to-day financial activities. storing financial records for easy access. spending money on current living expenses.