Under MACRS depreciation, the depreciable value of an asset is equal to the asset’s purchase price minus any installation costs. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The cost of retained earnings is generally higher than both the cost of debt and cost of preferred stock. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the country in which the bond is denominated. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Floating-rate bonds are bonds that can be redeemed at par at the option of their holder either at specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional […]
Date: September 19th, 2020
A Eurobond bond is a bond denominated in Euros. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Net fixed assets for CEE in 2013 were ________. (See Table 3.1) A) $45,484 B) $48,975 C) $54,511 D) $69,341 ANSWER A
Date: September 19th, 2020
Net profit margin measures the percentage of each sales dollar remaining after all costs and expenses, including interest, taxes, and common stock dividends, have been deducted. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Please explain the difference between a sunk cost and an opportunity cost and give an example of each type of cost. What will be an ideal response? ANSWER Sunk costs are cash outlays that have already been made (past outlays) and cannot be recovered. Sunk costs have no effect on the cash flows […]
Date: September 19th, 2020
One measure of the cost of common stock equity is the rate at which investors discount the expected common stock dividends of the firm to determine its share value. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
To calculate the initial investment, we subtract all cash inflows occurring at time zero from all cash outflows occurring at time zero. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
