What are the strengths of the net present value capital budgeting method?
What will be an ideal response
1. Incorporates the time value of money
2. Considers the asset's net cash flows over its entire life
3. Indicates whether the asset will earn the company's minimum required rate of return
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In Texaco Inc. v. Dagher et al., two oil refiners and gas suppliers, Texaco and Shell Oil, entered into a joint venture called Equilon to consolidate their operations in the western United States. Historically, Texaco and Shell were competitors, but for their joint venture they shared expenses and profits equally. The products produced by Equilon were sold under the brand names Texaco and Shell at a mutually agreed-upon price. Texaco and Shell retailers brought a class action lawsuit against the two companies, claiming there was a per se violation of the Sherman Antitrust Act because of the lack of price competition. The court held that
A. there was a per se violation because oil companies are automatically held to this standard. B. there was a per se violation because the joint venture was plainly anticompetitive. C. the rule of reason standard should apply because it is a joint venture and not a meeting of the minds. D. the rule of reason standard should apply because a market analysis was relevant.
Weather Corp issued 10-year, 8%, $100,000 bonds paying interest on an annual basis, at a $5,200 premium. Which one of the following statements is true?
a. Weather's annual interest expense on the bonds will be greater than the amount of interest payments to bondholders each year. b. Weather's annual interest expense on the bonds will be less than the amount of interest payments to bondholders each year. c. Weather will receive $94,800 as the issue price. d. The cash paid to bondholders will be $520 each interest period.
The cost of damage is the aggregate of all the potential damages multiplied by their respective _____.
Fill in the blank(s) with the appropriate word(s).
Differences in attitudes, values, beliefs, and personality are all examples of ______.
A. surface-level diversity B. bottom-level diversity C. deep-level diversity D. top-level diversity