In general, if a shareholder's ownership interest is not diminished as a result of a stock redemption, the Code will treat the transaction as a sale or exchange
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: If a shareholder's ownership interest is not diminished as a result of a stock redemption, the Code generally will treat the transaction as a dividend distribution.
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Corporate environmentalism recognizes the need to integrate environmental issues into the firm's strategic plans
Indicate whether the statement is true or false
If a business had a capacity of $8,000,000 of sales, actual sales of $5,000,000, break-even sales of $3,500,000, fixed costs of $1,400,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales?
A) 25% B) 18% C) 28% D) 30%
Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 10.00%. Based on the SML, what is the firm's required return? Do not round your intermediate calculations.
A. 11.05% B. 13.48% C. 12.71% D. 10.17% E. 10.50%
Billy is driving to the beach for spring break. Before leaving on his trip, he takes some cold medicine that makes him sleepy. He falls asleep at the wheel and collides with another car on the highway and breaks his leg
In this context, which of the following is the hazard? A) Spring break B) Knowing how to drive C) Taking the medicine D) Broken leg