1. Which one of the following would be considered a capital budgeting decision?
-Planning to issue common stock rather than issuing preferred stock
-Deciding to expand into a new line of products, at a cost of $5 million
-Repurchasing shares of common stock
-Issuing debt in the form of long-term bonds
2. Which of the following statements regarding discount brokers is true :
- All discount brokers offer on-line trading.
- Discount brokers only execute orders on stock transactions
- Discount brokers may offer little investment advice
- Discount brokers do not offer SIPC protection