What is a risk of an operating lease when compared to a finance lease? - Higher administration costs - No depreciation can be claimed - Must provide maintenance - Must provide insurance

A company is evaluating methods of raising capital to fund a massive new IT infrastructure project. Which financing strategy includes costs that could be deducted on the companys corporate tax return?

- Authorizing new shares of common stock - Issuing corporate bonds - Issuing a new series of preferred stock - Reinvesting company profits

How does a companys marginal tax rate affect the interest rate of debt? - It raises the after-tax interest rate. - It lowers the before-tax interest rate. - It lowers the after-tax interest rate. - It raises the before-tax interest rate

What is an advantage of combining outsourcing of inventory with a just-in-time inventory system?

- Reduces inventory levels - Easier to predict demand - Easier to adjust reorder amount - More Efficient use of redline method