Last year, an investor acquired $380,000 worth of arcandor stock, purchased $110,000 of long-term government bonds, and invested $80,000 in U. S. treasury bills, considered the risk-free asset. Over the course of the year, he earned a return of nine percent from arcandor stock, five percent from his long-term government bonds, and the risk free rate of three percent from his investment on U. S. Treasury bills. What was the risk premium on Arcandor's stock for the year? a. 8.2 percent. b. 12 percent c. 6 percent. d. 4.7 percent. e. 2 percent.

Which of the following statements is correct? a) one drawback of forming a corporation is that it generally subjects the firm to additional regulationsb) one drawback of forming a corporation is that it subjects the firms investors to increased personal liabilitiesc) one drawback of forming a corporation is that it makes it more difficult for the firm to raise capitald) one advantage of forming a corporation is that it subjects the firm's investors to fewer taxese) one disadvantage of forming a corporation is that it is more difficult for the firm's investors to transfer their ownership interests

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.