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Date Posted: 05:46:42 02/24/00 Thu
Author: Christina
Subject: Re: re. corrections to another sample mid-term answers
In reply to: Allison 's message, "Re: re. corrections to another sample mid-term answers" on 04:48:01 02/24/00 Thu

> > > 18. I do not understand why 6,000 is incorrect
> >
> > 40,000-14,000=26,000 EBIT
> > 26,000-int exp=20,000 EBT
> > 20,000-8,000= 12,000 NI
> >
> > int exp=6,000
> > So 6,000 is not incorrect???

I thought on Hodges answers, he said to check this answer (6,000) again

> > > 19. I need some help
> > > 21. I had that only c was correct, I don't
> understand
> >
> > a is always true due to no taxing on municipals
> > c could be false because of the abnormal curve that
> > occured in 1970's
> >
> >
> > > 22. really need help, I think I am setting it up
> > wrong
> >
> > T-bills interest rate are comprised of k=K*+IP only
> > you are given that they equal 8%, and IP=5%
> > therefore 8%=k*+5%
> > K*=3%

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