Which of the following statements is CORRECT?
A. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities.
B. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
C. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm.
D. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.
E. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0.
Answer: D
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Ace Industries has the following shareholders' equity accounts at December 31, 2018: Preferred stock, $100 par value, 10% dividend, 50,000 shares issued and outstanding$5,000,000 Common stock, $6 par value, 1 million shares issued and outstanding 6,000,000 Paid-in capital in excess of par 119,000,000 Unrestricted retained earnings 7,500,000 Retained earnings restricted for plant expansion 2,500,000 On December 15, 2018 Ace Industries repurchased 200,000 shares of its common stock for $10 per share. Based on its shareholders' equity accounts, what can be inferred about this purchase?
A. Ace retired the shares by reducing the common stock and paid-in capital accounts. B. Ace is reporting the shares as a $2,000,000 investment on the asset side of the balance sheet. C. Ace is holding $2,000,000 of treasury stock which is being disclosed in the notes to the financial statements. D. Not enough information is provided to determine how Ace recorded the purchase.
All of the steps in the Systems Development Life Cycle apply to software that is developed in-house and to commercial software
Indicate whether the statement is true or false
________ are small groups of consumers who interact directly and informally with product designers without a moderator
A) Cross-functional groups B) Ethnographic groups C) Observational groups D) Immersion groups E) Traditional focus groups
In general, a cluttered and crowded arrangement of merchandise conveys to customers a sense that the store focuses on ________
A) brand-name merchandise B) specialty items C) low-priced merchandise D) customer service E) staples