Which of the following tests evaluates such factors as entry barriers, supplier bargaining power, and the number of substitute products available?
A. The just-like-me test
B. The better-off test
C. The attractiveness test
D. The cost-of-entry test
Answer: C
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Cielo Corporation had net income of $740,000 in 20x4 and $830,000 in 20x5. Total stockholders' equity at the end of 20x4 was $1,250,000 and total stockholders' equity at the end of 20x5 was $1,500,000. Cielo's total assets at the end of 20x4 were $2,210,000 and its total assets at the end of 20x5 were $2,860,000. Based on this information, what is Cielo's return on equity for 20x5?
A) 32.74% B) 55.33% C) 57.09% D) 60.36%
A lessee has substantially all of the benefits and risks of ownership in an operating lease.
Answer the following statement true (T) or false (F)
Answer the following statement(s) true (T) or false (F)
1. Using long-term debt to raise needed cash is referred to as leverage. 2. Equity capital takes two forms: retained earnings and the sale of stock issues to the general public. 3. Venture capitalists provide funds for new, small, or struggling firms in return for partial ownership in the business. 4. The par value of a share of stock is the going market price for the stock. 5. Stock shares that are sold are called issued stock and the unsold shares are called unissued stock.
Which of the following statements is true if a bond is issued for an amount equal to its face value?
A) The bond's stated interest rate is less than the prevailing market interest rate at time of sale. B) The bond's stated interest rate is the same as the prevailing market interest rate at time of sale. C) The bond's stated interest rate is more than the prevailing market interest rate at time of sale. D) The bond is not secured by specific assets of the issuer.