Mom's Apple Pies (MAP) earned $500,000 this year. The company follows the residual dividend policy when paying dividends. MAP has determined that it needs a total of $600,000 for investment in capital budgeting projects this year. If the company's debt/asset ratio is 40 percent, what will its dividend payout ratio be this year? MAP has no preferred stock.
A. 40%
B. 28%
C. 72%
D. 48%
E. 52%
Answer: B
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In general, which of the following statements regarding self-employed retirement accounts is true?
A. In general, SEP IRAs have higher contribution limits than individual 401(k)s no matter the age of the contributing taxpayer. B. In general, SEP IRAs have higher contribution limits than individual 401(k)s if the contributing taxpayer is at least 50 years of age at year-end. C. In general, individual 401(k)s have higher contribution limits than SEP IRAs. D. None of the choices are true. In general, both SEP IRAs and individual 401(k)s have exactly the same annual contribution limits.
Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the
A) customer's ledger B) creditor's ledger C) inventory ledger D) merchandise inventory account
In a portfolio of three randomly selected stocks, which of the following could NOT be true, i.e., which statement is false?
A. The riskiness of the portfolio is less than the riskiness of each of the stocks if they were held in isolation. B. The riskiness of the portfolio is greater than the riskiness of one or two of the stocks. C. The beta of the portfolio is lower than the lowest of the three betas. D. The beta of the portfolio is higher than the beta of one or two of the stocks in the portfolio. E. The beta of the portfolio is calculated as a weighted average of the individual stocks' betas.
The types of product defects that have traditionally been recognized in product liability law include inadequate warnings.
Answer the following statement true (T) or false (F)