Look over Reading 1 again, and review the Main Idea Check.  Where did you find the main ideas for paragraphs 2-6?   Paragraph 2 [2] Paragraph 3 [3] Paragraph 4 [4] Paragraph 5 [5] Paragraph 6 [6]

If the economy has high levels of unemployment, the Federal Reserve will

Brutus Co. plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $9 million, although the company expects general revenues of $280 million next year from sources other than sales of the new pen. If Brutus Co. has a corporate tax-rate of 35% on its pretax income, what effect will the advertising for the new pen have on its taxes?

Brewtus is considering adding a microbrewery onto one of its existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

………………… is the ability of arthropods to acquire, maintain, and transmit microbial agents

Which of the following is NOT a hematophagous arthropod?

 Investment A: Year:                    0                  1                2                3                4            5 Cash flow:          -$14,000     $6000        $6000        $6000        $6000    $6000   Investment B: Year:                    0                  1                2                3                4            5 Cash flow:          -$15,000     $7000        $7000        $7000        $7000    $7000   Investment C: Year:                    0                  1                2                3                4            5 Cash flow:          -$18,000     $12,000     $2000        $2000        $2000    $2000   The cash flows for three projects are shown above. The cost of capital is 9.5%. Even though we know the payback period is an unreliable investment decision rule, suppose an investor decides to take projects with a payback period two years or less. Which of these projects would he take? 

A stock has a beta of 0.8, the risk-free rate is 2%, and the expected market return is 10%. What is the expected return of the stock?

A stronger dollar will shift the U.S. aggregate demand curve to the _____ and _____ output demanded.

Brutus Corporation is considering adding a new factory to increase its productive capabilities. The new factory will have an immediate capital expenditure of 100 million (time 0) and a delayed investment needed after two years, which is included in the FCF below. However, if Brutus decides to build the factory, the increase in production will create incremental FCF’s of 360 million in the first year (time 1), negative 431 million in the second year (time 2), and 171.6 million in the third year (time 3). Your brand-new analyst tells you that the IRR for this factory project is 20%. Assuming Brutus’s discount rate is 12%, should the firm pursue this new factory?