Author Question: Financial markets can be classified by which of the following? A) Type of asset traded B) ... (Read 87 times)

jman1234

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Financial markets can be classified by which of the following?
 
  A) Type of asset traded
  B) Maturity of the financial asset
  C) Owner of the financial asset
  D) All of the above can be classifications of financial markets.

Question 2

A corporation is evaluating the relevant cash flows for a capital budgeting decision and must estimate the terminal cash flow. The proposed machine will be disposed of at the end of its usable life of five years at an estimated sale price of 2,000.
 
  The machine has an original purchase price of 80,000, installation cost of 20,000, and will be depreciated under the five-year MACRS. Net working capital is expected to decline by 5,000. The firm has a 40 percent tax rate on ordinary income and long-term capital gain. The terminal cash flow is ________.
  A) 5,800
  B) 7,800
  C) 8,200
  D) 6,200



daiying98

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Answer to Question 1

Answer: D

Answer to Question 2

C



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