A certain firm originally had capital structure weights of 50% debt and 50% common equity. Since establishing those weights, the firm's stock price has risen dramatically. The firm has done no additional borrowing. Assume that nothing else in the economy has changed (e.g., interest rates, tax rates, and other macroeconomic factors remain constant). Because the firm's stock price has increased a great deal, ________.
A) the firm's cost of equity has increased
B) the firm's cost of debt has increased
C) the firm's WACC has decreased
D) the firm's cost of equity has decreased
D) the firm's cost of equity has decreased
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People with strong legitimate power usually have more success using ______ to have their requests fulfilled.
A. assertiveness B. silent authority C. informational control D. upward appeals
A company has the following information for its inventories A, B, C, and D: QuantityHistorical CostNet Realizable ValueA15$20$25B203530C402540D255035The necessary adjustment associated with the lower of cost and net realizable value would be:1.Inventory675 Cost of Goods Sold 6752.Cost of Goods Sold675 Inventory 6753.Inventory475 Cost of Goods Sold 4754.Cost of Goods Sold475 Inventory 475
A. Option 1 B. Option 2 C. Option 3 D. Option 4
Which of the following is/are true regarding majority, active investments?
a. An investor acquires shares of an investee so that the investor can control the investee both at the broad policy-making level and at the day-to-day operational level. b. U.S. GAAP views ownership of more than 50% of an investee as implying an ability to control the investee, unless evidence indicates to the contrary. c. IFRS views ownership of more than 50% of an investee as implying an ability to control the investee, unless evidence indicates to the contrary. d. An investor cannot exercise control of a majority-owned investee if a court effectively controls the investee in bankruptcy proceedings or if the investee is a foreign company whose government restricts the withdrawal of assets from the country. e. all of the above
E-mail is most appropriate for
A. exchanging large quantities of complex information. B. resolving conflicts. C. communicating routine messages. D. exchanging confidential information. E. communicating subtle, nonverbal, or inflectional clues.