The firms’ supply risk can best be analyzed by examining the components of the firm’s operations management compared with the key industry success factors. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The interest tax shield represents the value of the reduction in taxes that results from allowable deductions from taxable income. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Revolving credit agreements are ________. A) guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time B) non-guaranteed loans that specify the maximum amount that a firm can owe the bank at any one time C) credit arrangements made in cooperation with suppliers that allows a […]
Date: September 19th, 2020
$1.00 (one dollar) invested in a portfolio of “small ” U.S. stocks in 1925 would have grown to a value in excess of ________ by 2011 assuming that all dividends had been reinvested in the portfolio. (Choose the answer closest to the research provided dollar amount.) A) $100 B) $1,000 C) $10,000 D) $100,000 […]
Date: September 19th, 2020
Managers must manage the supply network for efficient, responsive procurement and distribution to meet their customers’ needs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The combined debt plus equity income is equal to the equity income + (Interest * the tax rate). Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Tangshan Mining borrowed $100,000 for one year under a revolving credit agreement that authorized and guaranteed the firm access to $200,000. The revolving credit agreement had a stated interest rate of 7.5 percent and charged the firm a 1 percent commitment fee on the unused portion of the agreement. Based on this information, the effective […]
Date: September 19th, 2020
Comparison of the degree of operating leverage of two firms is valid only when the base level of sales used for each firm is the same. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
In a world of both personal and corporate taxes, individual investors may not be able to get the full advantage of debt by borrowing personally. Corporate borrowing rates, personal borrowing rates, and tax rates may differ. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Tangshan Mining borrowed $100,000 for one year under a line of credit with a stated interest rate of 7.5 percent and a 15 percent compensating balance. Normally, the firm keeps a balance of about $10,000 in its checking account. Based on this information, the effective annual interest rate on the loan is ________. A) 7.89% […]
Date: September 19th, 2020
