The weights used to determine the relative importance of the firm's sources of capital should reflect
A) book values in accord with generally accepted accounting principles.
B) current market values for bonds, common stock, and preferred stock and book values for retained earnings.
C) current market values.
D) subjective adjustments for firm risk.
Answer: C
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Indicate whether the statement is true or false
The Clydesdale Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%. What is Clydesdale Company's residual income?
A) $252,000 B) $900,000 C) $1,400,000 D) $760,000
The threat of immediate harm or offensive contact is termed as ________
A) battery B) assault C) disparagement D) libel
If you include sales promotion in a reply, you should
A) provide a great deal of detail for persuasive purposes. B) put it in the first paragraph. C) make it brief and subtle. D) put it at the end of the friendly closing. E) convince the reader that the product or service inquired about is superior to all others.