It is easier to incorporate the impact of flotation costs on the cost of equity capital in using the dividend growth model rather than the Security Market Line

Indicate whether the statement is true or false.


Answer: TRUE

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A digital signature is

a. the encrypted mathematical value of the message sender's name b. derived from the digest of a document that has been encrypted with the sender's private key c. the computed digest of the sender's digital certificate d. allows digital messages to be sent over analog telephone lines

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Firms such as General Electric (GE), Johnson & Johnson, Coca-Cola, and British Airways focus their attention on ________ to maximize customer satisfaction and retention in part by offering training to handle complaints, answer questions, and solve consumer problems.

A. comparison pricing B. non-competitive pricing C. prepurchase behavior D. postpurchase behavior E. value perception

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Which of the following is/are true regarding minority, active investments?

a. An investor acquires common shares of an investee with the intent of exerting significant influence over the investee's activities, perhaps through representation on the investee's board of directors. b. An investor can exert significant influence over an investee with ownership of less than a majority of the voting stock, because many different individuals or entities own most publicly held corporations, and those owners typically do not collaborate in voting their shares. c. U.S. GAAP and IFRS view investments of between 20% and 50% of the voting stock of another company as minority, active investments unless evidence indicates that the investor cannot exert significant influence. d. Minority, active investments appear as noncurrent assets on the balance sheet. e. all of the above

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The equity theory could support either egalitarian or hierarchical structures.

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

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