The contribution margin: is dependent upon achieving a minimal level of output, increases as the level of output decreases, decreases as the level of output decreases, has a major effect on the present value beak-even point, changes indirectly to a firm's tax rate change

3.Which one of these statements is correct concerning the CAPM? The CAPM is the only available method for determining an appropriate discount rate for a proposed project, The market rate of return is most commonly based on the forecasted return on the market for the next 5-year period, CAPM is used quite frequently by firms in their capital budgeting process, The expected return on the 30-year U.S. treasury bond is the most commonly used as the risk free rate of return, An increase in the risk-free rate combined with a beta greater than 1.0 increases the discount rate computed using the CAPM

4.Market efficiency: arbitrage conducted by irrational investors, the absence of arbitrage, speculation by amateur investors, all investors to be rational, countervailing irrationalities

5. The form of market efficiency that only relates to whether past market returns are useful in predicting future market rate is _____ from efficiency. open, strong, semi strong, weak, stable