Three people who work full-time are working together on a project, but their totaltime on the project is to be equivalent to that of only one person working full-time. if one of the people is budgeted for one-half of his time to the project and the second person for one-third of her time, what part of the third workers time should be budgeted to this project?
a. 13.3%
b. 35.2%
c. 16.7%
d. 18.7%

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.

Describe what fixed costs and marginal costs mean to a company.

Bathlinks corporation has a debt to assets ratio of 73%. this tells the user of bathlinks’s financial statements that a. bathlinks is getting a 27% return on its assets. b. there is a risk that bathlinks cannot pay its debts as they come due. c. 73% of the assets are financed by the stockholders. d. based on this measure, the user should not invest in bathlinks.