Use the information for the question(s) below. Consider the following tax rates: Capital Ordinary Dividend Year Gains Rate Income Rate Rate 1997-2000 20% 40% 40% 2001-2002 20% 39% 39% 2003- 15% 35% 15% "The current tax rates are set to expire in 2008 unless Congress extends them. The tax rates shown are for financial as the same is true for dividends if the assets are held for less than 61 days The effective dividend tax rate for a pension fund in 2006 is closest to O 20% 25% 15% 0% Which of the following statements regarding long-term supply contracts is FALSE? O Long-term supply contracts insulate the firms from commodity price risk Long-term supply contracts are bilateral contracts negotiated by a buyer and a seller Long-term supply contracts are designed to eliminate credit risk. The market value of the contract at any point in time may not be easy to determine, making it difficult to track gains and losses. Insurance that compensates for the loss or unavoidable absence of crucial employees in the firm is called business liability insurance key personnel insurance property insurance business Interruption insurance Use the information for the question(s) below. The current spot exchange rate, S, is 13662/ Suppose that the yield curve in both countries in flat. The riskeerate on dobles, rs 535% and the interest rate on pounds Using the covered interest parity condition, the calculated one-year forward rate Fis dosest to 51 9161 $1 8764/E 51 856BE 51 8961/6 Moving to the next question prevent changes to this