Maurice wants to take $5,000 out of his savings account and invest it in mutual funds. which trade-off best describes the consequences of his decision? less liquidity in exchange for more risk and more returns less liquidity in exchange for less risk and more returns more liquidity in exchange for more risk and less returns more liquidity in exchange for more risk and more returns

What is the most important factor that affects the value of a company? a) cash flow b) earnings c) supply and demand d) number of employees

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be: