1. What information would you want if you were asked to make the decision for Ann and Jack? (Choose all that apply.)
A. Marital status and tax situation of each partner.
B. Growth prospects of the firm.
C. Risk tolerance of the owners.
D. Age of the current owners.
E. Capital needs of the firm
2. The more bank capital the bank holds on its balance sheet, the better off are its equity holders. Is this true, false or uncertain? Explain.
3. The point where the net present values of two mutually exclusive projects are equal is referred to as the: crossover point.