1. If you were starting a business, what tax considerations might cause you to prefer to set it up as a proprietorship or a partnership rather than as a corporation?

2. What is the capitalized value, when i=14% per year, of $2200 per year, starting in year one and continuing forever, and $12000 in year five, repeating every five years thereafter, continuing forever?

3. Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM of 4.89 percent and mature in 15 years. If we assume semiannual compounding, at what price will the bonds sell.