Question 1 The major goal of businesses in the U.S.is: Answers a. To pay taxes to the government b. To increase the wealth of the owners To provide employment C d. To maximize exports e. all of these Question 2 To evaluate new projects to produce new products or services, firms: Answers: a. try to include positive and negative externalities in their estimates b. estimate the cash flows from the new projects C will do all of these d, discount the cash flows to present value e.compare the return on investment to the weighted average cost of capital for that project Question 3 Interest paid on debt is a tax-deductible expense for businesses. Calculate the after-tax cost of debt on the following hond for a corporation that is in the 21% tax bracket. The fixed interest rate on the bond is 10% Answers: a. 10% b. $2.10 7.9% d. 2.1% e. 7.9 years