The optimal portfolio includes all of the following characteristics except which of the following?

Which of the following statements is least accurate with respect to the price volatility characteristics for option-free bonds?

BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100
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bonds outstanding.
6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3
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shares of common stock, Issue price $100
8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common
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shares, Issue price $80
9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1
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share of common.
Average market price of common is $52.00 per share. Common shares outstanding at the
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beginning of the year were 40,045.
Net Income for the period was $200,000, while the tax rate was 40%.
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What were the Diluted EPS for the year?

If a company depreciates equipment by using MACRS for income tax purposes but uses the straight-line method for financial accounting purposes, the tax consequences resulting from the difference will affect:

When should a rational financial manager pay a bill if 1) a discount is offered, 2) the discount has not yet expired, 3) the firm needs to borrow funds to take the discount, 4) the firm will have sufficient cash by the end of the net period, and 5) the best possible borrowing rate exceeds the cost of forgoing the discount?