1. Which of the following is not a capital budgeting decision? a. Borrowing money to repurchase common stock in the market b. Purchasing a customer list form a competitor. c. Hiring a research chemist for the Research and Development department. 2. Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $4,000 per year. If he can get a five-year loan with an annual interest rate of 7.5%, what is the maximum price he can pay for the car? a. $20,324 b. $18,243 c. $16,184 3. A stock's beta measures the: a market risk premium on the stock. b. quantity of firm specific risk an investor must bear c. quantity of market risk an investor must bear