An increase in ________ will increase the cost of common equity
A) the expected growth rate of dividends
B) the risk-free rate
C) the dividend
D) both A and B
Answer: D
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What will be the monthly payment on a home mortgage of $75,000 at 12% interest compounded monthly, to be amortized over 30 years?
A) $775.90 B) $1,034.53 C) $1,028.61 D) $771.46
Assume that a car owner contracts with a mechanic to have his engine overhauled
The mechanic mistakenly used original equipment quality piston rings in doing the overhaul, whereas the contract had called for the use of premium quality rings that are better than original equipment quality. Which of the following is true? A) This is a substantial performance, and the owner must still pay something to the mechanic. B) This is a substantial performance, and the owner owes nothing to the mechanic. C) This is a material breach, and the owner must still pay something to the mechanic. D) This is a material breach, and the owner owes nothing to the mechanic.