______ is the division of a single lot into two or more sublots and simultaneously processing each sublot on identical (or very similar) work centers as a separate lot.

A. Lot processing
B. Lot splitting
C. Lot allocating
D. Lot wrapping


B. Lot splitting

Business

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The discount rate used in net present value calculations is the company's minimum rate of return

Indicate whether the statement is true or false

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Employer contributions to defined benefit pension plans are subject to several forms of government regulation

Indicate whether the statement is true or false

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In November 2002, Dick Clark contracted to host the next five New Year's Eve celebrations in Times Square. This agreement has to be in writing to be enforceable

Indicate whether the statement is true or false

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Omnicorp is all equity financed and generates perpetual annual EBIT of $500. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year

Omnicorp has 1,000 shares outstanding which trade for $3.125. The stockholders of Omnicorp require a return of 8%. Omnicorp is considering an open market stock repurchase. It plans to buy 20% of its outstanding shares. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds with a coupon rate (and yield) of 2%. Assume that the tax rate is 50%. What price does Omnicorp have to offer for repurchased shares such that the repurchase price is equal to the price that prevails after the repurchase is complete? A) $3.125 B) $3.472 C) $3.906 D) $4.34 E) $4.13

Business