The reason why reinvested earnings have a cost equal to rs is because investors think they can (i.e., expect to) earn rs on investments with the same risk as the firm's common stock, and if the firm does not think that it can earn rs on the earnings that it retains, it should distribute those earnings to its investors. Thus, the cost of reinvested earnings is based on the opportunity cost principle.
Answer the following statement true (T) or false (F)
True
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Intangible assets include all of the following except
A) natural resources. B) licenses. C) goodwill. D) trademarks
Within psychology, first impressions are often related to a research term, thin-slice judgments. This means that,
A. customers do not judge the salesperson quickly. B. we are actually processing information quite slowly. C. we are consciously aware of our decisions (90 percent or more). D. our judgments about buying decisions never occur automatically. E. our decisions or judgments about someone or something occur automatically.
The Heinrich v. Titus-Will Sales, Inc case stands for the principle that:
a. the UCC requires proper state licensing for a company claiming to be a merchant to actually have merchant status. b. a buyer in the ordinary course of business acquires good title when buying from a merchant seller who was entrusted with possession of the goods. c. risk of loss depends on who has title to the goods at the time the goods are damaged or destroyed. d. a void title is no title.
The income from continuing operations helps investors make predictions about the company's past performance
Indicate whether the statement is true or false