1)Youboughtapainting10yearsagoasaninvestment.Youoriginallypaid$85000forit.Ifyousold

itfor$484050,whatwasyourannualreturnoninvestment?

6)

A)4.7percentB)47percentC)12.8percentD)19percent

2)Which of thefollowingwill not reducetheagency problemexperienced by shareholders?

A)Increased monitoring by shareholdersB) Salary bonuses for management based on financial performance

C)The granting of share options to managementD) The use of restrictive covenants in bond deeds

3)1)

TwofirmsareidenticalinallrespectsexceptthatFirm2has$10000investedinmarketable

13)

securitiesata9percentrateofreturn.InthiscaseFirm1willhavea

returnontotalassets.

currentratioanda

A)higher,lowerB)lower,higherC)higher,higherD)lower,lower