Maria had capital losses last year of $10,000. She will be able to deduct how much from her other taxable income in that year? A) $10,000 B) $ 5,000 C) $ 3,000 D) $ 2,000 ANSWER C
Date: September 19th, 2020
What is the NPV of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks. Initial project investments were $13B. Assume that the initial investment was paid on Dec 31, 2008. Assume that Airbus will produce 60 aircraft per year for five years. […]
Date: September 19th, 2020
Costner Inc would like to introduce its new haircutting machine, the “terminator.” The machine will cost $15,000 today. As a result of purchasing the machine, Costner expects to give 5,000 more haircuts for $8 each. In the first year, Costner will give 2,000 more haircuts, and in the second year Costner will give 3,000 more […]
Date: September 19th, 2020
The Sarbanes Oxley act tightened rules governing financial disclosures. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The “due on sale clause” requires A) the buyer to pay the entire amount due at closing. B) the seller to pay all of the buyer’s points at closing. C) repayment of the balance on the home loan when the property changes hands. D) the seller to pay all property taxes that have become due […]
Date: September 19th, 2020
One advantage in dealing with full-service brokers is they often have inside information about a company. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Matthew had a $4,000 gain from the sale of his car. He A) need not report the gain since it arose from the sale of a personal asset. B) must report the gain as a capital gain. C) must report only half the gain since capital gains enjoy favorable tax treatment. D) can defer paying […]
Date: September 19th, 2020
The NPV method assumes that cash inflows are reinvested at the: A) internal rate of return. B) firm’s cost of capital. C) average yield on corporate bonds. D) average yield from an equity index fund. E) risk-adjusted hurdle rate. ANSWER B
Date: September 19th, 2020
A seller of mail order merchandise must get your approval for delaying a shipment more than 30 days or refund you your money. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A discount broker provides the same services as a full-service broker, including research. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
