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
The money market includes transactions in short-term financial instruments. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The risk-return trade-off implies that the return on a riskless asset must be zero. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Cash flows and profits are synonymous; in other words, higher cash flows equal higher profits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Earnings before taxes, or taxable income, is equal to operating income minus financing costs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Over-the-counter markets include all security markets, with the exception of organized exchanges. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The more debt a company uses to finance its assets, the lower will be its operating income due to higher interest expense. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Shareholder selection committees select potential board of director nominees ensuring that board members will monitor management sufficiently to protect shareholder interests. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and public ownership. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
