Which one of the following statements is TRUE?
A. A shareholder-friendly charter will make it easier for a company to be acquired.
B. A company whose board members are elected in staggered terms is said to be an interlocking board of directors.
C. A shareholder-friendly charter will make it easier for shareholders to meet with the CEO if they have concerns.
D. A targeted share repurchase can be used to encourage a hostile takeover.
E. An example of an agency cost is when the board of directors pays a dividend to shareholders.
Answer: A
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Which one of the following nations fall in the lower-middle-income category?
A) Burundi B) Bangladesh C) Egypt D) Venezuela E) none of the above
Hancock Company manufactures and sells two lines of furniture, case goods and upholstery. During the most recent accounting period, the Case Goods and Upholstery Divisions sold 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below: (Do not round intermediate calculations.) Case Goods UpholsterySales$1,600,000 $400,000 Less cost of goods sold: Unit-level production cost 1,000,000 240,000 Depreciation, production equipment 240,000 60,000 Gross margin$360,000 $100,000 Less operating expenses: Unit-level selling and administrative costs 60,000 50,000 Corporate-level facility expenses (fixed) 52,000 52,000 Net income (loss)$248,000 $(2,000)If unit sales for both divisions
increased 10%, the company would report which of the following? A. A $52,000 increase in net income for the Upholstery Division B. A net income for the Upholstery Division of $9,000 C. A 10% increase in total net income of the company D. A decline in profit for the Upholstery Division.
Callable preferred stock is preferred stock that may be redeemed or retired at the option of the stockholder
Indicate whether the statement is true or false
Which of the following is NOT a capital budgeting question?
A) The choice of which long-term assets to purchase to meet the firm's business goals B) The choice of what type of business a firm wants to operate C) The proper mix of stocks and bonds to issue for financing assets D) None of the above are capital budgeting questions.