All of the following would be considered a fixed cost for a bottled water company except:
A. Property taxes on its factory building
B. Hourly wages for machine operators
C. Depreciation on its manufacturing equipment
D. Rent on warehouse facility
Answer: B
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GPS Inc wishes to estimate its cost of retained earnings. The firm's beta is 1.3. The rate on 6-month
T-bills is 2%, and the return on the S&P 500 index is 15%. What is the appropriate cost for retained earnings in determining the firm's cost of capital? A) 17.0% B) 19.5% C) 22.1% D) 18.9%
Into which of the following categories do patent and copyright infringement fall?
a. Conflict of interest b. Balancing ethical dilemmas c. Organizational abuse d. Interpersonal abuse e. Taking things that don't belong to you
If $432 invested today yields $450 in a year's time, what is the discount factor?
A) 0.10 B) 0.96 C) 1.96 D) 1.92
Schluster Hardware, Inc., had a gross profit of $380,000, operating expenses of $210,000, and income taxes of $48,000. What is Schluster's net income after taxes?
A. $122,000 B. $80,000 C. $208,000 D. $170,000 E. $332,000