1) You are considering the following two mutually exclusive projects. What is the crossover point? Year Cash Flow A Cash Flow B 0 -$50,000.00 -$51,000.00 1 $0.00 $12,000.00 2 $33,000.00 $29,000.00 3 $40,000.00 $27,000.00 A) 29.72 percent B) 30.01 percent C) 25.76 percent D) 30.53 percent E) 32.08 percent

2) A company is preparing to sell new shares of stock to the general public. What is the name associated with the initial set of paperwork required to be filed with the SEC? A) Registration statement B) Red herring C) Prospectus D) Comment letter E) Security agreement

3) What is the name of a preliminary prospectus that investors can review while waiting for IPO shares to be cleared for sale by the SEC? A) Rights offer B) Green Shoe C) Spread D) Tombstone E) None of the above