Smile Industries capital structure consists of $1,000,000 of debt at 6 percent interest and 1,500,000 of stockholders equity at 2 percent. The overall cost of capital is
a. 2.4%
b. 4.8%
c. .8%
d. 9.8%
D
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One of the reasons that led to the inconsistency of the large structural macroeconomic models was
A. that endogenous variables such as foreign output were treated as exogenous. B. that all equations were estimated together to test their interrelations with one another. C. that individual equations were estimated in isolation with one another. D. that exogenous variables such as level of technology were treated as endogenous.
The Chester Company has issued 10%, nonparticipating, cumulative preferred stock with a total par value of $400,000 and common stock with a total par value of $800,000. No dividends are in arrears. How much cash will be paid to the preferred stockholders and the common stockholders, respectively, if cash dividends of $180,000 are distributed?
A) $80,000 to preferred and $100,000 to common B) $60,000 to preferred and $120,000 to common C) $55,000 to preferred and $125,000 to common D) $40,000 to preferred and $140,000 to common
Which of the following terms refers to the overturn of verdict when jury misconduct is detected?
A. remittitur B. judgment notwithstanding the verdict C. motion for summary judgment D. motion for judgment on the pleadings
________ builds around what P&G calls the "First Moment of Truth" — the critical three to seven seconds that a shopper considers a product on a store shelf
A) Internal marketing B) Sole sourcing C) Warehousing D) Test marketing E) Shopper marketing