Please Answer the questions

The book value (aka carrying value) of assets

in the U.S. is generally determined under GAAP and is based on the historical cost of the asset

represents the true market value of the asset according to GAAP

is always the best measure of the company's value to an investor

is always higher than the replacement costs of the assets

All of the following are advantages a corporation may have over a partnership or proprietorship, except which one?

Limited liability.

Ease of transfer of ownership interest.

Unlimited life.

Elimination of double taxation.

Ability to raise capital.

How many different portfolios could be formed with only 2 assets?

1

2

4

16

An infinite number

Which of the following would tend to make a financial marketmoreefficient?

Increase in taxes

Increase in asymmetrical information

Decrease in asymmetrical information

Higher transaction costs

Fewer competitors (participants)

Normal (a.k.a. conventional cash flow, i.e. costs followed by cash inflows) Projects Q and R have the same NPV when the discount rate is zero. However, Project Q has larger early cash flows that R. Therefore, we know that at all discount rates greater than zero Project Q will have a _________ NPV than R. (Hint: With larger early CFs, Q is effectively shorter term than R., Which is more sensitive to changes in interest rated in an NPV profile?)

greater.

smaller.

equal, since they have the same NPV when the discount rate is zero.

you need to know the interest rate to answer this question.

you need to know the actual cash flows to answer this question.