Which of the following is least likely to result in a constructive dividend?
A. a sale of a corporation's asset to a shareholder at fair market value
B. a payment by a corporation of a shareholder's debts
C. an unreasonable salary paid to a shareholder
D. a payment by a corporation of a shareholder's personal expenses
Answer: A
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Which of the following is true of a Regulation A offering?
A) It imposes resale restrictions on the securities it offers. B) It necessitates the issuers to prepare a registration statement for offers exceeding $100,000. C) It requires the maximum disclosure of information to investors at the time of the issuance of the securities. D) It mandates that an offering circular be provided to the investors prior to the purchase of securities.
Which of the following statements about liquidity and solvency ratios is correct?
A. Liquidity ratios include the return on equity ratio and the times interest earned ratio. B. Solvency ratios include the current ratio and the net profit margin ratio. C. Both liquidity ratios and solvency ratios measure a company's ability to meet its financial obligations. D. Unlike solvency ratios, liquidity ratios relate to the company's long-run survival.
The IRR method assumes the cash flows are reinvested at the internal rate of return rather than the required rate of return
Indicate whether the statement is true or false
Ordinarily, a court will not consider whether a contract is fair or unfair
Indicate whether the statement is true or false