In a model involving fixed costs, the 0 - 1 variable guarantees that the capacity is not available unless the cost has been incurred
Indicate whether the statement is true or false
T
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An individual with the personality trait of extroversion tends to be quiet and reserved
Indicate whether the statement is true or false
Last year Rosenberg Corp. had $195,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?
A. 4.36% B. 4.57% C. 4.80% D. 5.04% E. 5.30%
An investor expects earnings from a stock to grow at a constant rate of 3% over time and the investors' rate of discount is constant at 4%. If earnings last year were $152, then the fundamental value of the stock would be
A. $152. B. $190. C. $1,520. D. $15,656.
Which of the following represents the biggest challenge in the decision to purchase new equipment?
a. Estimating employee training for the new project. b. Estimating cash flows for the future. c. Estimating transportation costs of the new equipment. d. Estimating maintenance costs for the new equipment. e. None of the answers are correct.