Terri Allessandro has an opportunity to make any of the following investments: Investment Purchase Price Future Value Year of Receipt

A $12,382 $23,000 5
B $324 $2,000 19
C $3,408 $11,000 9
D $236 $18,000 48

The purchase price, the lump-sum future value, and the year of receipt are given below for each investment. Terri can earn a rate of return of 12 %on investments similar to those currently under consideration. Evaluate each investment to determine whether it is satisfactory, and make an investment recommendation to Terri.

Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks

What is an example of a good stock to buy during economic expansion? a) cyclical stock b) defensive stock c) income stock d) bond

Double corporation acquired all of the common stock of simple company for