An exception to weighting stocks by market cap is the Dow Jones Industrial Average, which uses the stock price relative to the sum of the prices of all the stocks in the index

Answer the following statements true (T) or false (F)

1) Operating profits omit interest payments. 2) When the maximum amount of interest is paid on a loan, the present value of the cost of the investment exceeds the initial cost of the investment. 3) Salvage values are strictly positive. 4) When a firm uses its own funds to self-finance an investment, the operating profit exceeds the taxable profit. 5) Financing an investment with debt increases the net present value of the investment.

Suppose Paul has chosen a combination of two goods, A and B, such that the marginal utility per dollar spent for good A (MUA/PA) is .6 and the marginal utility per dollar spent for good B (MUB/PB) is 1. To increase utility with the same amount of money, Paul should:

A. increase the number of B consumed and decrease the number of A consumed. B. increase the number of both A and B consumed. C. increase the number of A consumed and decrease the number of B consumed. D. do nothing; he cannot increase total utility.