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ou need to make a quick edit before renewing your subscription, learn more about the Office Web Apps. Learn More 18) You own 1000 shares
ou need to make a quick edit before renewing your subscription, learn more about the Office Web Apps. Learn More 18) You own 1000 shares of Newstar Financial stock, currently trading for $57 per share. You are offered a deal where you can exchange these stocks for 900 shares of Amback Financial Group stock, currently trading at $63 per share. What is the value of this trade, if you choose to make it? A)-$320 B)-$340 C) $300 D) $300 19) A company intends to install new management software for its warehouse. The software will cost $47,000 to buy and will cost an additional $148,000 to install and implement. It is anticipated that it will save the company $44,000 through reductions in staff and $69,000 in general inventory costs in the first year after installation. What is the total benefit to the company in the first year if they choose to install the software? A) $56,500 B) $45,200 C) $113,000 D) $79,100 20) You have a used CD store. At an estate sale, you can purchase 230 compact discs for $356.5. You believe you could sell the CDs for an average of $3.05 each. What is the net benefit of buying the CDs at the estate sale and selling them in your store? A) $445 B) $545 C) $645 D) $345 Market Prices and the Valuation Principle 21) Consider the following prices from a McDonald's Restaurant
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