In order to obtain a patent under U.S. Patent Law, an inventor must have an invention that is I. Not obvious II. Unique III. Useful IV. Not a modification of any prior patents

Michigan Industries has three projects under consideration. Project L is a lower-than-average-risk project, project A is an average-risk project, and project H is a higher-than-average-risk project

You have gathered the following information to determine if one or more of these projects has an acceptable rate of return for the firm. • Sources of financing 50% debt and 50% equity • Rd = 8.00% before taxes • Tax Rate = 30% • Average beta for Michigan Industries = 1.0 • Rm = 13.00% • Rf = 4.00% • Adjusted WACC = 9.30% • Beta for project L = 0.80, for project A = 1.00, and for project H = 1.20 • IRRL = 9.00%, IRRA = 10.00%, and IRRH = 11.00% Calculate the required rate of return for each project and determine which, if any, projects are acceptable to the firm. What will be an ideal response?

Firms with highly differentiated products may have loyal customers, or customers who are unable to purchase similar products or services from other firms and are therefore more likely to accept increased prices due to a firm passing on increased

costs by a powerful supplier. Indicate whether the statement is true or false