Problem 1. What impact does the number of years until maturity have on the value of a bond?
Problem 2. List three capital budgeting methods (decision rules) and rank them from least to most useful. Defend your ranking.
Problem 3. Should capital budgeting projects be evaluated on their pre-tax or after tax cash flows? Why?
Problem 4. What is a stockholder? How does a stock split affect the stockholder?