2018-2019 2017_--() :-A1142, : tion: (20 points, 2 points each) ple choice 1. "Double taxation" refers to: B) l partners paying equal taxes on profits. corporations paying taxes on both dividends and retained earnings. D og taxes on profits at the corporate level and dividends at the perso D) the fact margina that marginal tax rates are doubled for corpora onsersonal level 2. Which of the following would be considered a capital budgeting decision Planning to issue common stock rather than issuing preferred stock A decision to expand into a new line of products, at a cost of $5 million epurchasing shares of common stock Issuing debt in the form of long-term bonds 5) C) D) 3. A balance sheet portrays the value of a firm's assets and liabilities: A) over an annual period. B) over any stated period of time. C) at any stated point in time. D) at the end of the calendar year 4. In which of the following asset accounts are you least likely to find a difference between market valuc and book value? A) Cash C) Land B) Inventory D) Shareholders' equity 5. What is the rate of return for an investor who pays $1.054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? A) 5.00% B) 5.33% C) 6.46% D) 7.00%