The asymmetric information explanation of capital structure suggests that firms will issue new equity only when the managers believe the firm's stock is overvalued; as a result, issuing new equity is considered a negative signal that will result in a
decline in share price.
Indicate whether the statement is true or false
TRUE
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What is a typical first response in the progressive discipline system?
A. termination B. official spoken warning C. unofficial spoken warning D. temporary suspension with no written notice E. written warning with threat of temporary suspension
A $50,000 bond issue with a carrying value of $47,000 is called at 102 and retired. The entry to record the retirement of bonds would be:
a. Bonds Payable 50,000 Loss on Retirement of Bonds 4,000 Unamortized Bond Discount 3,000 Cash 51,000 b. Bonds Payable 47,000 Cash 47,000 c. Bonds Payable 50,000 Gain on Retirement of Bonds 3,000 Cash 47,000 d. Bonds Payable 50,000 Loss on Retirement of Bonds 1,000 Cash 51,000
Ravi makes an offer to buy Abdul's house. The offer is conditional upon Ravi arranging financing. Before the offer expires, Ravi finds another house more to his liking. He makes no effort to arrange financing for Abdul's house
Can Abdul sue Ravi for breach of contract? A) No. The offer was conditional on Ravi obtaining financing, and he didn't. B) No. The condition could have been waived, but it wasn't. C) Yes. Ravi was obliged to make a good faith attempt to fulfill the condition, and clearly he didn't, so he cannot rely on the condition not being met. D) Yes. This condition was against public policy and therefore Ravi could not rely on it. E) Yes. Abdul waived the condition, so Ravi cannot rely on it.
A haberdashery conducts an exhaustive analysis and calculates their profit function as 4x2 + 3x - 57. What is their fixed cost?
A) 4 B) 4x2 C) 57 D) 3x