Company A and Company B both report the same level of sales and net income. Therefore, A) both A and B will report the same Earnings Per Share. B) both A and B will report the same Gross Profit Margin. C) both A and B will report the same Net Profit Margin. D) both A […]
Date: September 19th, 2020
Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Financial markets exist in order to allocate savings in the economy to the demanders of those savings. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The risk-return trade-off is seen in many areas of finance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Giving the company’s CEO stock options as part of his or her compensation package is an example of an agency cost. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Earnings available to common shareholders represents income that may be reinvested in the firm or distributed to its owners. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Each purchase occurring in the secondary markets increases the total stock of financial assets that exist in the economy. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A seasoned equity offering is the sale of additional shares by a company whose shares are already publicly traded. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Net profit margin is equal to the gross profit margin times the operating profit margin. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Earnings available to common shareholders is equal to a corporation’s positive net cash flow over a given period, typically one year. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
