The cost of borrowing and the cost of selling securities affect the target cash balance of a firm.

Using the index model, the alpha of a stock is 3%, the beta is 1.1, and the market return is 10%. What is the residual given an actual return of 15%?

A) .0%
B) 1%
C) 2%
D) 3%

I am a ___ group therapist.I do not consider people to be irrational,selfish,or deeply troubled.Instead,I think people are striving to understand themselves and their life experiences.

A) psychodynamic
B) psychodramatic
C) cognitive-behavioral
D) support
E) humanistic

A firm will probably take on an investment project as long as the expected profit rate is appreciably higher than the ________.

The ending balance in the PP&E (net) account will be closest to:

A) $501,600
B) $396,455
C) $441,400
D) $505,400

The P/E ratio that is based on a firm's financial statements and reported in the newspaper stock listings is different from the P/E ratio derived from the dividend discount model (DDM) because

A) the DDM uses a different price in the numerator.
B) the DDM uses different earnings measures in the denominator.
C) the prices reported are not accurate.
D) the people who construct the ratio from financial statements have inside information.
E) They are not different-this is a "trick" question.