Read the information about two competing credit cards. credit card 1 credit card 2 interest rate 0% introductory rate, then 13.8% after one year 12.1% annual fee none no annual fee in the first year, then $30 each year thereafter credit card 1 would be the better option if the borrower had major expenses in the first year. spent a lot of money in the second year. used the card regularly in the long term. carried a large balance in the long term.

What is the difference between a public and a private corporation?

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.