Sizing up human resource management involves: A) identifying the firm’s strengths and weaknesses related to human resource management. B) an external assessment of the industry. C) an internal assessment of the firm’s strengths and weaknesses. D) None of the above. ANSWER D
Date: September 19th, 2020
________ placement of securities restricts the ability to resell the securities, thus investors often require ________ interest rates on bonds issued in this manner. A) Private; lower B) Private; higher C) Public; higher D) Public; identical ANSWER B
Date: September 19th, 2020
The author cites a global study by Servaes and Tufano from 2006 which shows ________ as the dividend policy preferred by the vast majority (76%) of the firms surveyed. A) a specific percentage amount B) a specific target amount C) a specific growth amount D) no specific policy ANSWER B
Date: September 19th, 2020
The base level of EBIT must be held constant to compare the financial leverage associated with different levels of fixed financial costs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial leverage results from the presence of variable financial costs in a firm’s income stream. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A ________ is a short-term, unsecured promissory note issued by firms with a high credit standing. These notes are primarily issued by commercial finance companies. A) line of credit B) commercial paper C) revolving line of credit D) T-bill ANSWER B
Date: September 19th, 2020
The focus of the analysis of human resource management and strategy is on: A) the skills and knowledge level of the firm’s employees. B) the capabilities and character of the management team. C) the capabilities and potential of the firm’s employees. D) All of the above. ANSWER B
Date: September 19th, 2020
Demand risk refers to the probability that actual supply for the products or services will exceed anticipated supply. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Financial leverage may be defined as the potential use of variable financial costs to magnify the effects of changes in earnings before interest and taxes (EBIT) on a firm’s earnings per share (EPS). Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Longneck Brewery Inc. has net income of $3.00 per share and a dividend payout ratio of 35%. How large is the firm’s per share dividend payment? A) $1.05 B) $1.95 C) $1.50 D) $0.35 ANSWER A Explanation: A) Div = EPS*DPO ratio = $3 * 0.35 = $1.05.
Date: September 19th, 2020
