Operating leverage results from the existence of operating costs in a firm’s income stream. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
In the short-run, firms tend to stick to a stable dollar-dividend policy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Commercial paper is a form of financing that consists of short-term, secured promissory notes issued by firms with a high credit standing. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Value proposition refers to: A) a statement that describes the benefits of the firm’s products and services. B) a statement that describes the unique features of the firm’s products and services. C) a statement that describes why a specific target customer should choose the firm’s products or use its services. D) None of the above. […]
Date: September 19th, 2020
Operating leverage may be defined as the potential use of fixed operating costs to magnify the effects of changes in sales on a firm’s earnings before interest and taxes (EBIT). Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Direct forms of bankruptcy costs include legal and administrative costs associated with the actual bankruptcy proceedings, as well as the money paid to lawyers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The mandate of the board of directors is to ensure that management makes decisions that are consistent with maximizing the value of PREFERRED shares. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When two groups have different access to information, there is then SYMMETRIC information for these two groups. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Operating leverage is present when a firm has fixed operating costs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Currently in the United States, it is not legal to issue different classes of common stock. For instance, issuing two classes of common stock where one class has superior voting rights compared to the other. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
