1. What is the cause of financial risks that are placed on the common stockholders of a firm?

a. ?Uncertain input price

b.? Unstable sales volume

c. ?High fixed operating costs

d. ?Use of fixed-income securities

e. ?Inability to adjust to selling prices

2. Annual demand 152,806 units Carrying costs $2.82 per unit Fixed Costs per order $7.3 Number of orders 27 What are the total costs?

3. Which of the following is true of companies in Japan with respect to their capital structures??

a. ?Companies in Japan use greater proportions of debt than others.

b. ?Companies in Japan are financed entirely through equity.

c. ?Equity monitoring costs are low in Japan.

d. ?Dividends are taxed as income in Japan.

e. ?Companies in Japan raise most of their corporate debt through publicly issued bonds.