Securitization has its upside (primarily liquidity and diversification), but it has its downside as well. Which of the following are potential downsides to securitization? Choose the best answer. Select one: Tax-avoidance and regulatory-avoidance Non-transparency Agency costs All of the above

Which of the following statements about fair value is true? Fair value accounting is also known as "mark-to-market" accounting. O Level 3 inputs are observable market prices for similar assets in active markets. O Fair value is a measure of market-based entry value. O Level 1 inputs should be used to determine fair value only when Level 2 and Level 3 inputs are not available.

Which of the following limits the market from becoming a fully efficient market?   New information takes time to process. Obtaining new information is costly. The existence of closed end investment companies. Both a. and b. are correct. All of the above answers are correct. None of the above answers is correct.

Which of the following is probably a good reason for leasing instead of buying? None of these is good reason. O All of these are good reasons. O Leasing may reduce transactions costs. Taxes may be reduced by leasing. Leasing may provide a beneficial reduction of uncertainty.

eBook Print Item Discount Rates, Quality, Market Share, Contemporary Manufacturing Environment Sweeney Manufacturing has a plant where the equipment is essentially worn out. The equipment must be replaced, and Sweeney is considering two competing investment alternatives. The first alternative would replace the worn-out equipment with traditional production equipment; the second alternative uses contemporary technology and has computer-aided design and manufacturing capabilities. The investment and after-tax operating cash flows for each alternative are as follows: Year TraditionalEquipment ContemporaryTechnology    0 $(990,250) $(3,998,000)    1 591,150  192,500     2 394,650  398,750     3 209,100  591,550     4 209,100  801,600     5 209,100  801,600     6 209,100  801,600     7 209,100  1,007,000     8 209,100  1,991,100     9 209,100  1,991,100    10 209,100  1,991,100  The company uses a discount rate of 18 percent for all of its investments. The…