Core Concepts Inc,. has experienced a stock price increase from $100.00 to $131.59 in only three years. Over this time period, what has been the firm’s geometric average annual rate of return? A) 9.58% B) 9.63% C) 9.88% D) 9.92% ANSWER A Explanation: A) Via Calculator: N = 3, PV = -100, PMT […]
Date: September 19th, 2020
Operating leverage is defined as the use of fixed operating costs to magnify the effects of changes in sales on a firm’s earnings before interest and taxes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The degree of operating leverage will increase if a firm decides to compensate its sales representatives with a fixed salary and bonus rather than with a pure percent-of-sales commission. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
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
The major real-world benefit of debt is that interest payments are a tax-deductible expense. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
