If a company has both common and preferred shares outstanding and wishes to calculate book value per share,
a. net assets must be divided by the total number of both classes of stock.
b. net assets, less the redemption value of the preferred stock, must be divided by the number of shares of common stock outstanding.
c. stockholders' equity must be divided by the total number of both classes of stock.
d. stockholders' equity, less the cost of treasury shares held, must be divided by the number of common shares outstanding.
b
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If the Fed follows the Taylor rule and actual inflation is below the inflation target set by the Fed, _____
A. ?the Fed should reduce the nominal federal funds rate. B. ?the Fed should reduce the supply of money. C. ?the Fed should charge a higher tax rate. D. ?the Fed should spend lesser money.
Which of the following statements is TRUE if total fixed costs decrease while the sales price per unit and variable cost per unit remain constant?
A) The contribution margin increases. B) The breakeven point increases. C) The contribution margin decreases. D) The breakeven point decreases.
Under the American rule, when an assignor assigns the same right to more than one person, the
first assignment in time prevails. Indicate whether the statement is true or false
Widespread participation in process analysis is essential not only because of the work involved but also because:
A) employees tend to neglect their regular work duties, thus no one falls too far behind. B) it builds commitment. C) no one can analyze a process by himself. D) a silo mentality should prevail and this requires large numbers of workers.