Which of the following bonds has a comparatively higher yield to maturity??
A. ?A one-year bond with a 6.7 percent interest today
B. ?A three-year bond with a 5 percent interest today
C. ?A two-year bond with a 4 percent interest today
D. ?A four-year bond with a 4.5 percent interest today
Answer: D
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With regard to preferred stock,
a. its issuance provides no flexibility to the issuing company because its terms always require mandatory dividend payments. b. no dividends are expected by the stockholders. c. its stockholders may have the right to participate, along with common stockholders, if an extra dividend is declared. d. there is a legal requirement for a corporation to declare a dividend on preferred stock.
The receiving report is prepared by the vendor to provide evidence that the purchase order was received
Indicate whether the statement is true or false
Tomiko is the manager of Davis Freight, a mid-sized trucking company. The owners have assigned Tomiko the task of applying strategic decision making to analyze the competitive environment. Tomiko does an analysis of the competitors currently in the market and how much market share each has. In addition, Tomiko looks at trends in the trucking industry and how Davis has addressed those trends. Tomiko assesses the possibility of new entrants to the market, factoring in barriers to entry in the trucking business. In addition, Tomiko studies substitutes and complements, as well as suppliers and customers. Is Tomiko covering all of her bases in assessing the competitive environment?
A. Tomiko should not consider the impact trends in the industry as part of her assessment. B. Tomiko needs to include an assessment of the tactics other companies use to compete. C. Tomiko should look at the impact of both cost disadvantages and distribution channels. D. Tomiko failed to consider the impact of capital requirements and brand identification. E. Tomiko has covered the bases necessary for her analysis and is ready to present it.
Answer the following statements true (T) or false (F)
1. The accounting rate of return method focuses on operating income instead of net cash inflow generated by an asset. 2. The accounting rate of return also is known as the average rate of return or annual rate of return. 3. The Accounting Rate of Return method evaluates the lifetime return of an investment, whereas Return on Investment evaluates the annual return of an investment. 4. If the expected accounting rate of return meets or exceeds the required rate of return, the decision rule is to not make the investment. 5. The accounting rate of return is calculated by dividing the average annual operating income by the average amount invested.