If expected return is less than required return on an asset, rational investors will ________
A) buy the asset, which will drive the price up and cause expected return to reach the level of the required return
B) sell the asset, which will drive the price down and cause the expected return to reach the level of the required return
C) sell the asset, which will drive the price up and cause the expected return to reach the level of the required return
D) buy the asset, since price is expected to increase
B
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Which of the following would be used when computing earnings per share for a company with a complex capital structure?
a. A nonconvertible bond b. A stock option c. A nonconvertible preferred stock d. Retained earnings
Criminal acts are prohibited by
A) local statutes only. B) state statues only. C) federal statutes only. D) local, state, and federal statutes.
Crestfield leases office space. On January 3, the company incurs $28,000 to improve the leased office space. These improvements are expected to yield benefits for 4 years. Crestfield has 2 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?
A. Debit Depletion Expense $28,000; credit Accumulated Depletion $28,000. B. Debit Depletion Expense $14,000; credit Accumulated Depletion $14,000. C. Debit Amortization Expense $7000; credit Accumulated Amortization-Leasehold Improvements $7000. D. Debit Depreciation Expense $7000; credit Accumulated Depreciation $7000. E. Debit Amortization Expense $14,000; credit Accumulated Amortization-Leasehold Improvements $14,000.
When John subscribed to a financial news publication online, the company told him that as a service it would be creating a cookie. Explain what the online publication did and why.
What will be an ideal response?