Gross profit margin measures the percentage of each sales dollar left after a firm has paid for its goods and operating expenses. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A sunk cost is a cash outlay that has already been made and cannot be recovered. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Accounts receivable for CEE in 2013 was ________. (See Table 3.1) A) $14,056 B) $19,861 C) $14,895 D) $18,333 ANSWER B
Date: September 19th, 2020
Putable bonds give the bondholders an option to sell the bond at a price higher than par value by the amount of one year interest payment when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt. Indicate whether the statement is true […]
Date: September 19th, 2020
The market price of a callable bond will not generally exceed its call price, except in the case of a convertible bond. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The higher, the value of ________ ratio, the better able a firm is to fulfill its interest obligations. A) dividend payout B) average collection period C) times interest earned D) average payment period ANSWER C
Date: September 19th, 2020
Since a putable bond gives its holder the right to “put the bond” at specified times or because of specified actions by the issuing firm, the bond’s yield would be lower than that of an otherwise equivalent non-putable bond. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The cost of common stock equity capital represents the return required by existing shareholders on their investment. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
When making replacement decisions, the development of relevant cash flows is complicated when compared to expansion decisions, due to the need to calculate ________ cash inflows. A) conventional B) opportunity C) incremental D) sunk ANSWER C
Date: September 19th, 2020
The cost of retained earnings is always lower than the cost of a new issue of common stock due to the absence of flotation costs when financing projects with retained earnings. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
