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
If a firm’s variable costs per unit increase,the firm’s ________. A) financial breakeven point will decrease B) operating breakeven point will increase C) sale price per unit will decrease D) fixed costs per unit will increase ANSWER B
Date: September 19th, 2020
If a firm’s fixed financial costs decrease, the firm’s operating breakeven point will ________. A) decrease B) increase C) remain unchanged D) change based on the sale price per unit ANSWER C
Date: September 19th, 2020
Your firm borrows money from the bank on a short-term note due in 9 months. This type of financing would be most appropriate for which of the following activities? A) The support of accounts receivable B) The construction of a new warehouse C) The support of accounts payable D) The financing of new equity […]
Date: September 19th, 2020
In a world with taxes, M&M’s second proposition defines the expected return on equity as: A) Ke = Ku + (Ku – Kd) (1 – t) ( ) B) Ke = Ku + (Ku + Kd) (1 – t) ( ) C) Ke = Ku + (Ku – Kd) (1 + t) ( ) D) […]
Date: September 19th, 2020
