When OmniOil Corporation wishes to issue certain securities, it must provide sufficient in¬for¬mation for Petra, and other unsophisticated investors, to evaluate the fi¬nancial risk involved. Specifically, the law imposes liability for making a false statement or omission that is "material.". What sort of information would Petra consider material?
Most likely, Petra, and any other average unsophisticated investor, is not con¬cerned with mi¬nor inaccura¬cies but with facts that if disclosed would tend to deter her from buying the se¬curities. This would include facts that have an important bearing on the con¬dition of the issuer and its busi¬ness—fraud, a divi¬dend change, a significant change in the firm's financial condition, and a new discovery, process, or product, as well as its li-ability, loans to offi¬cers and directors, cus¬tomer delinquencies, and pending lawsuits. Making false statements or omissions with respect to this type of infor¬ma¬tion could subject a corporation to liability under the securities laws.
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Burnley and Co., a graphic design firm, has offices in New York, Texas, California, New Mexico, and New Jersey. Each of these offices is headed by a president who reports directly to Emma Burnley, the CEO. The heads of the centralized HR, Finance, and Marketing teams report to Emma Burnley as well. Managers in the various offices also report to the CEO directly. Based on this information, which of the following statements is most likely to be true?
A. Burnley and Co. has a tall hierarchical structure. B. Emma Burnley is underworked. C. Emma Burnley has a wide span of control. D. Burnley and Co. is a mechanistic organization.
Consider the following items of information:I. The target recovery period. II. The discount rate. III. The timing (i.e., year) of a cash flow. Which of the above items would be needed to calculate the present value of a cash flow?
A. I only. B. I, II, and III. C. II only. D. II and III. E. I and II.
A technology called a(n) data area network links together many storage devices over a network and treats them as one large disk.
Answer the following statement true (T) or false (F)
Al-Tek is considering leasing some new equipment for 5 years with annual payments. The equipment would cost $115,000 to buy and would be depreciated straightline to a zero salvage value. The actual salvage value is zero. The applicable pretax borrowing rate is 8 percent. The lessee does not expect to owe taxes for several years. The lessor's tax rate is 21 percent. What is the minimum lease payment that will be acceptable to both parties?
A) $28,603.33 B) $28,745.16 C) $27,750.00 D) $22,708.67 E) $26,709.12