The levels of fixed-cost assets and funds that management selects affect the variability of returns

Genentech, a biotechnology company, reported current assets of $2,209 million and current liabilities of $652 million in 2001, and in 2000, current assets of $1,793 million and $453 million of current liabilities. Calculate the current ratio for 2001.

A. 3.39 B. 3.62 C. 3.96 D. 4.00

Your annual mortgage payments are $10,000 of which $8,000 represents interest payments, your marginal tax rate is about 30%, and you do not itemize deductions. Home ownership will reduce your tax payments by about how much?

A) zero B) $2,400 C) $3,000 D) $7,000