When computing the NPV of a project, it is important to consistently use either nominal dollars and nominal rates or real dollars and real rates
Indicate whether this statement is true or false.
Answer: TRUE
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The following information has been provided to you by the Smith Corporation for the year ending December 31, 2018:The numerator used in the calculation of basic earnings per share was $797,000. Cash dividends were paid to the common shareholders. 8% convertible bonds with a par value of $1,000,000 were issued on July 1, 2018. The corporation's marginal income tax rate is 40%. 6% convertible preferred stock with a par value of $800,000 were outstanding during the entire year. Assuming that both the bonds and preferred stock are dilutive, what is the numerator that should be used in the calculation of diluted earnings per share?
A. $773,000 B. $821,000 C. $893,000 D. $869,000
The research of Dr. Ralph G. Nichols has little application to the customer service industry.
Answer the following statement true (T) or false (F)
Stating bad news in vague terms is a good way to preserve the audience's self-esteem
Indicate whether the statement is true or false.
In a ratio comparing an income statement number with a balance sheet number, the external analyst:
a. will be able to arrive at a good ratio by totaling two balance sheet numbers. b. will usually divide the income statement number by the beginning balance sheet number. c. will probably not capture changes that occur unevenly throughout the year. d. will usually divide the income statement number by the sum of the beginning and ending balance sheet numbers.