Financial leverage
a. increases the return to the common shareholders during good earnings years.
b. uses lower cost borrowed funds to earn a higher rate of return on those funds than their cost.
c. decreases the return to the common shareholders during bad earnings years.
d. all of the above
e. none of the above
D
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Andromeda Industries had 300,000 shares of common stock with a $3 par value and retained earnings of $180,000 at January 1, 2011 . In 2011, the stock was split 3 for 1 . In 2010, earnings per share were $1.80 . Which of the following would not result from the stock split?
a. The new shares would total 900,000. b. The total amount in the capital stock account would remain the same. c. The par value would become $1. d. Retained earnings would be reduced. e. The earnings per share for 20 years prior to the split would be reduced.
Carolina Hills Manufacturing has two processing departments, Department I and Department II. During the year, direct materials were assigned to the two production departments: $280,000 to Department I and $300,000 to Department II. During the period, $8,000 of indirect materials were used in production.
Provide the journal entry to record this transaction. Process costing is used.
Compare the various types of bankruptcy filings
What will be an ideal response?
Which of the following is NOT true of interviews?
a. When you serve as the interviewer, your task is to pose questions to the interviewee. b. If you are the interviewee, your prime responsibility is to answer the questions posed to you. c. Sometimes audience members are able to email or text the interviewer with questions they would like to have answered. d. Interviews conducted in a conversational manner usually appeal less to audience members than strictly Q&A interviews.