The main advantages for a firm in going public are greater liquidity and better access to capital

Indicate whether this statement is true or false.

Answer: TRUE

Business

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The EOQ model with quantity discounts attempts to determine

a. what is the lowest purchasing price. b. whether to use fixed-quantity or fixed period order policy. c. how many units should be ordered. d. what is the shortest lead time. e. what is the lowest amount of inventory necessary to satisfy a certain service level.

Business

Mavis is a schoolteacher with an annual salary of $28,000 . Last year she sold a substantial block of securities that she had inherited from her grandmother several years before. She used the proceeds to buy an apartment building in a neighboring

community. She realized a $15,000 capital loss on the sale. She carries over $12,000 of the capital loss to the current year. During the current year, a fire destroys the apartment building when its adjusted basis is $100,000 . Mavis receives an insurance check for $110,000 and immediately invests it in another apartment building. Advise Mavis how she should deal with these situations for the current tax year.

Business