- T/F: For a profitable firm, an increase in its marginal tax rate will increase its weighted average cost of capital if the firm has debt in its capital structure.
- T/F: For the purpose of estimating the firm's cost of debt for a project, one could observe the yield-to-maturity on recently issued bonds with a similar rating and term-to-maturity.
- Wines and other cultural alcoholic beverages can provide health benefits. Evidence for this includes:a. Native Americans suffering malnutrition from lack of B-vitamins after Puritans outlawed their beveragesb. The amount of resveratrol that McGovern measured in his vesselsc. Both of these are evidenced. Neither of these are evidence
- What is the species of grape used for most wine around the world?
- What shows the quantity demanded of a good at various prices
- Discount rate for low risk level under subjective approach
- Who is the first person to be credited with distillation and what else is this person known for?
- You have a very sweet fermentation that is no longer bubbling and hasn't bubbles for a few days. How could you fix this "problem" to have the fermentation finish?a. add more yeastb. give the fermentation a stirc. transfer to a new secondary fermenter and do both of the other choices
- Various liquors such as gin and absinthe have herbals infused into them. How can that be accomplished in the still?
- T/F: Price elasticity of demand is a unit-free measure
- We discussed racking with respect to beer. Wine and other fermented fruits are also racked. What is the benefit or racking, or transferring the liquid to another vessel?a. It can remove the liquid from solids that have settled and would make the beverage unpleasantb. It can introduce a small amount of oxygen to allow the yeast to finish fermenting and/or to carbonate the beveragec. There are no benefitsd. Both of these are benefits
- The molecules in the grapes and other fruits that are fermented to alcohol are
- What is the main way that modern wines are aged (at least red wines)?
- Often when making fermented foods and beverages at home, one must add yeast to get the fermentation started. Which of these would NOT need yeast inoculum to get going?a. commercial honey from the farmer's market or grocery storeb. raw honey in waterc. raw fruits fresh from the fieldd. canned fruits
- T/F: The estimated cost of equity is sensitive to the estimated dividend growth rate
- You have a very sweet fermentation that is no longer bubbling and hasn't bubbles for a few days. What is this condition called?a.
- T/F: The use of the dividend growth model to compute the cost of equity does not explicitly consider risk
- T/F: The use of the dividend growth model to compute the cost of equity requires dividend growth become a constnat rate at some point in the future
- Ignoring taxes, if a firm issues debt at par, then: I. the cost of the debt is equal to its coupon rate II. the cost of the debt is equal to its yield-to-maturity III. the cost of the debt differs from its current yield
- T/F: The use of the dividend growth model to compute the cost of equity requires one to assume that the dividend growth rate will remain constant