Which one of the following is an example of a "flexibility" option?
A. A company has an option to invest in a project today or to wait for a year before making the commitment.
B. A company has an option to close down an operation if it turns out to be unprofitable.
C. A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
D. A company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date.
E. A company invests in a jet aircraft so that its CEO, who must travel frequently, can arrive for distant meetings feeling less tired than if he had to fly a commercial airline.
Answer: C
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A company's capital structure consists of common stock only, which amounts to $14 million. However, this year, the company plans to issue $7 million of debt, and use the proceeds to repurchase $7 million of its existing equity. The stock repurchase should not change the size of the company. As a result, any change in the firm's earnings per share (EPS) must be a result of the change in its:
A. level of operations. B. beta coefficient. C. EPS coefficient of variation. D. capital structure. E. EPS standard deviation.
In question # 3 above, evidence is introduced that the statute of limitations for filing an EEOC claim is 300 days in the state where the case was filed. Since the performance appraisals which were allegedly tainted by race were issued more than 300 days before the case was filed, the employer moves to dismiss the case, arguing that the statute of limitations has passed, the case has been filed
too late. Based on this evidence, what should you decide? a. the case should be dismissed because the statute of limitations has passed, and the case was filed too late b. the case should be dismissed because the tainted evaluations triggered the employee's right to file a cause of action, and the case should have been filed within 300 days of the first tainted performance appraisal c. the Motion to Dismiss should be denied because the employee's right to file a cause of action accrued when she was terminated, and not when a tainted performance evaluation was created d. the Motion to Dismiss should be denied because the case of a termination based on tainted performance evaluations may be filed at any time
Mars Inc. printed 1,200 brochures with the intention of distributing them using a national newspaper. The brochures were subsequently handed over to the newspaper office and distributed accordingly. This scenario depicts the use of ________
A. a preprinted insert. B. a printacular. C. gatefold advertising. D. classified advertising. E. display advertising.
When is it acceptable to use the direct write-off method?
A. If the dollar amount of uncollectible accounts is not material. B. If most sales are made to other businesses. C. If most uncollectible accounts do not occur in the period of sale. D. All of these answer choices are correct.