Short corp just issued bonds that will mature in 10 years, and long corp issued bonds that will mature in 20 years. both bonds promise to pay a semiannual coupon, they are not callable or convertible, and they are equally liquid. further assume that the treasury yield curve is based only on the pure expectations theory. under these conditions, which of the following statements is correct?

(a) if the yield curve for treasury securities is flat, short's bond must under all conditions have the same yield as long's bonds.

(b) if the yield curve for treasury securities is upward sloping, long's bonds must under all conditions have a higher yield than short's bonds.

(c) if long's and short's bonds have the same default risk, their yields must under all conditions be equal.

(d) if the treasury yield curve is upward sloping and short has less default risk than long, then short's bonds must under all conditions have a lower yield than long's bonds.

(e) if the treasury yield curve is downward sloping, long's bonds must under all conditions have the lower yield.

Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows: treadmill exercise bike total sold 185 123 service contracts 67 55 the store can only sell a service contract on a new piece of equipment. of the 185 treadmills sold, 67 included a service contract and 118 did not.

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

Last year, johnson mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. the firm paid $700 in dividends and had a tax rate of 35 percent. the firm added $2,810 to retained earnings. the firm had no long-term debt. what was the depreciation expense?