A farmer who plans to sell his/her corn crop in three months would benefit MOST from which of the following?

• A.A long futures contract and steady prices
• B.A short futures contract and rising prices
• C.A long futures contract and falling prices
• D.A short futures contract and falling prices

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An accounts receivable manager has been asked to accelerate cash into her company by offering trade discount terms to its customers. Her company's cost of capital is 11%. If she offers terms of 2/10, net 30 on a $50,000 invoice, what is the present value to the company if the customer accepts the discount and pays early?

• A.$48,852
• B.$48,121
• C.$48,366
• D.$47,996

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What type of tax does a multinational auto manufacturer commonly pay in foreign countries at each stage of a vehicle's production?

• A.Withholding tax
• B.Capital tax
• C.Value added tax
• D.Asset tax

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Which of the following is a source of short-term financing?

• A.Bond issuance
• B.Factoring of accounts receivable
• C.Retaining profits
• D.Issuance of common stock

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Underfunded pension obligations can be reduced by:

• A.immediate vesting in the defined contribution plan.
• B.higher benefit payments to retirees.
• C.higher premiums to the Pension Benefit Guaranty Corporation.
• D.an upward shift in the yield curve.

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