1. Rarity Fabrics is considering the introduction of a new clothing line into their chain of stores. Which of the following is NOT relevant to determining whether to take the project?
Cost of capital for this project is assumed to be 8%.
Sales of the new clothing like are expected to grow by 5% each year.
Rarity Fabrics expects the sales of the new product to generate $150 thousand worth of revenue in its first year.
Rarity Fabrics currently generates $470 thousand worth of revenue.
Sales of the new clothing will result in a reduction of $65,000 of their other clothing lines.
2. The most important federal legislation affecting the regulation of life was the
A. Investment company act B. McFadden Act C. SEC Act D. McCarran-Ferguson Act E. Insurance Freedom Act
3. How you would set up the equity mix of a business organization using: common stock, preferred stock, loans, and/or bonds.