In the context of income distribution, the middle class in the United States has grown in size over the past several decades

Indicate whether the statement is true or false


FALSE

Business

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The following information has been gathered for the Door Division:     Return on investment (ROI) 15.0% Sales$120,000  Operating assets$60,000  Cost of Capital 12.0% Profit margin 7.5% What is the Door Division's residual income?

A. $1,800. B. $5,400. C. $2,700. D. $3,600.

Business

The Colson Company has budgeted sales for the year as follows:Quarter1234Sales in units12,00014,00018,00016,000The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter is (in units):

A. 13,000 units. B. 16,500 units. C. 15,000 units. D. 17,500 units.

Business

In a capitalist economy,private-sector businesses are free todecide how much they will charge for their products.

Answer the following statement true (T) or false (F)

Business

Which of the following statements is CORRECT?

A. If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be equal. B. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same. C. If Firms X and Y have the same earnings per share and market-to-book ratio, then they must have the same price/earnings ratio. D. If Firm X's P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and/or be expected to grow at a faster rate. E. If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.

Business