8. Which of the following statements is CORRECT? Corporations generally face fewer regulations than proprietorships. Co rporate shareholders are exposed to unlimited liability. is usually easier to transfer ownership in a corporation than in a partnership. rporate shareholders are exposed to unlimited liability, but this factor is offset by the b. d. Co tax advantages of incorporation. 9. Which of the following is an example of a capital market instrument? Commercial paper. Preferred stock. U.S. Treasury bills. b. c. d. Banker's acceptances. e. Money market mutual funds. 10. Which of the following statements is CORRECT? The New York Stock Exchange is an auction market, and it has a physical location. Home mortgage loans are traded in the money market. If an investor sells shares of stock through a broker, then it would be a primary market transaction Capital markets deal only with common stocks and other equity securities. While the distinctions are blurring, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties. a. b. c. d. e. 11. For 2017, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 13%, and the federal-plus-state income tax rate was 40%, what was the firm's Economic Value Added (EVA) for the year? a. $1,420 b. $926 c. $1,112 d. $1,482 e. $1,235 12. Hayes Corporation has $300 million of common equity, with 6 million shares of common stock outstanding. If Hayes' Market Value Added (MVA) is $198 million, what is the company's stock price? (Round your final answer to two decimal places.) a. $83.00 b. $75.53 c. $92.13 d. $94.62 e. $68.06