Balance sheet and income statement data indicate the following: Bonds payable, 6% (this is year 4 of 20 years) Preferred 8% stock, $100 par(no change during the year) $1,200,000 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 340,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data
presented above, what is the number of times bond interest charges were earned (round to twodecimal places)?
a. 5.72
b. 6.83
c. 4.72
d. 4.83
a
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When a company declares a 3-for-1 stock split, the number of outstanding shares
a. is tripled compared to the number of shares that were outstanding prior to the split. b. stays the same, but, the number of issued shares triples. c. is tripled, while the number of issued shares is reduced to one-third of the original issued shares. d. is reduced, and the number of issued shares is tripled.
Scenario planning is a useful technique for firms competing in industries characterized by ________ and ________.
A. low profit margins; stability B. high profit margins; stability C. unpredictability; change D. predictability; stability
High fixed costs in a period of low activity can cause a low net profit margin
Indicate whether the statement is true or false
A sales message is wasted if your reader fails to act
Indicate whether the statement is true or false