Suppose edison would like to invest $10,000 of his savings.
one way of investing is to purchase stock or bonds from a private company.
suppose touchtech, a hand-held computing firm, is selling bonds to raise money for a new lab? a practice known as (equity or debt) finance. buying a bond issued by touchtech would give edison (an iou, or promise to pay, from or a claim to partial ownership in) the firm. in the event that touchtech runs into financial difficulty, (the stockholders or edison and the other bondholders) will be paid first.
suppose instead edison decides to buy 100 shares of touchtech stock.
which of the following statements are correct?
a. touchtech earns revenue when edison purchases 100 shares, even if he purchases them from an existing shareholder.
b. expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of edison's shares to decline.
c. an increase in the perceived profitability of touchtech will likely cause the value of edison's shares to rise.
d. alternatively, edison could invest by purchasing bonds issued by the government of japan.
eassuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a (higher or lower) interest rate than a bond issued by the government of japan.

The table shows the demand and supply schedules for magazines. complete the following sentences. the equilibrium price of a magazine is $ 4 and the equilibrium quantity is 150 magazines a week. price (dollars per magazine) quantity demanded quantity supplied (magazines per week) 3.00 160 138 3.50 155 144 4.00 150 150 4.50 145 156 5.00 140 161 now a fall in the price of a newspaper decreases the quantity demanded by 11 magazines a week at each price. at the original equilibrium price, a occurs. to return to equilibrium, the price of a magazine a. surplus; rises b. shortage; rises c. shortage; falls d. surplus; falls as the market returns to equilibrium, the quantity demanded and the quantity supplied a. decreases; increases b. decreases; decreases c. increases; decreases d. increases; increases the new equilibrium price is $ nothing a magazine.

Arriving and delivering a load of company executives for a business meeting at a destination far from home base requiring an overnight stay, a company’s pilot requested approval from the company finance office to pay to either have the company’s jet brought into the fbo's hangar overnight to protect it from a forecast snowfall or to have it de-iced by the fbo the following morning well-before scheduled departure. the company was under considerable financial pressure at the time, and the pilot’s requests were denied because of the cost. so, early the following morning, the pilot was up on the wing of the jet sweeping off an accumulation of snow and ice with a borrowed push broom in preparation for the scheduled departure with the executives, but slipped and fell to the ground, suffering a broken neck. the business was organized as a limited partnership, owned by 3 limited partners and one general partner. as a cost-saving measure, the company had dropped its workers’ compensation insurance before the accident. analyze the potential liability for the pilot’s injuries of each of the following, showing your reasoning clearly: the company the general partner the limited partners analyze how the outcome would have been different, if the business had been organized as a corporation and observed all of the formalities to legitimize its corporate status. analyze how the outcome would have been different, if the pilot had been covered by workers’ compensation insurance.

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.