Which of the following is NOT correct?
a. The after-tax cost of debt for a firm with losses is equal to the interest rate on the debt.
b. Firms always pay dividends on their common stock issues because of the ease with which common shareholders can assume control of the firm.
c. Flotation costs for preferred stock are higher than for debt.
d. Most debt is placed privately and thus there is no flotation cost.
B
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Factors that have increased the risk of global supply chain management include the ______.
a. reduced financial volatility b. stability of energy prices c. increases in complexity of goods and services produced d. emergence of the European Union as a major economic power
Flagler Electronics currently sells a camera for $240. An aggressive competitor has announced plans for a similar product that will be sold for $205. Flagler's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is $175, and Flagler has a profit goal of 20% of sales. If Flagler meets competitive selling prices, what is the company's target cost?
A. $175. B. $164. C. $48. D. $192. E. $41.
The use of departmental overhead rates will generally result in:
A. The use of a separate cost allocation base for each activity in the factory. B. The use of a separate cost allocation base for each month. C. The use of a separate cost allocation base for each department in the factory. D. The use of a single cost allocation base. E. The use of a single overhead cost pool for the factory.
List the three steps, in order of occurrence, of the operating cycle of a merchandising business
What will be an ideal response