In the Modigliani and Miller world where we now assume that taxes exist, and that interest payments are tax deductible for firms, then which of the following statements is TRUE? A) VL = VU – Dt B) VU = VL + Dt C) VL = VU + Dt D) VU = VL – Dt […]
Date: September 19th, 2020
An analysis of the industry’s technological improvements can help managers better identify which of these trends are occurring within a particular industry? A) Major efficiency gains. B) Reductions in overhead C) Lower production costs D) All of the above ANSWER A
Date: September 19th, 2020
________ is/are the most common form of short-term financing for a small and medium sized firms. A) Commercial paper B) Banker’s acceptances C) Short-term bank loans, or promissory notes, D) New common stock ANSWER C
Date: September 19th, 2020
A ________ is an agreement between a commercial bank and a business that states the maximum amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time, provided sufficient funds are available. A) revolving credit agreement B) line of credit C) commercial paper D) single payment note […]
Date: September 19th, 2020
The ________ feature found with many issues of preferred stock requires that all current and past due preferred dividends must be paid prior to any dividend payout to common shareholders. A) cumulative B) participating C) convertible D) historical ANSWER A
Date: September 19th, 2020
Which of the following is NOT a question related to an industry analysis? A) How close is the firm to full capacity? B) In what industry life cycle is the firm? C) How profitable is the industry? D) What are the overall prospects for revenue frowth and increased profitability in the industry? ANSWER […]
Date: September 19th, 2020
All of the political factors can give managers further insights into the opportunities and risks facing a particular industry EXCEPT: A) favorable tax changes or incentives in the industry. B) pending and new government relations. C) nature and intensity of competition. D) demographic changes in the population. ANSWER C
Date: September 19th, 2020
Preferred shares earn their name in part because they have priority payment over: A) short-term debt obligations. B) long-term debt obligations. C) common stock dividends. D) all of the above. ANSWER C
Date: September 19th, 2020
Loans on which the interest is paid in advance are often called ________. A) premium loans B) long-term loans C) term deposits D) discount loans ANSWER D
Date: September 19th, 2020
Seasonal buildups of inventory and receivables are generally financed with ________. A) short-term loans B) long-term loans C) retained earnings D) stockholders’ equity ANSWER A
Date: September 19th, 2020
