Which of the following factors favors the use of more debt in a company's financial structure?
A) High levels of taxable income
B) Low levels of taxable income
C) The business is basically risky with unpredictable cash flows.
D) Risk of bankruptcy would make customers reluctant to buy the company's products.
Answer: A
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Gilligan Co.'s bonds currently sell for $1,150. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in 6 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds, the YTC or the YTM?
A. 3.92% B. 4.12% C. 4.34% D. 4.57% E. 4.81%
An organizational unit whose manager is solely responsible for generating revenues is referred to as a ______________________________
Fill in the blank(s) with correct word
Journalists are usually trained professionals with work experience in the media. Bloggers are most likely to be
A) promoters paid by large media firms to pitch products. B) government agents masquerading online as ordinary consumers. C) hackers and spammers attempting to steal consumers' identities. D) unemployed journalists filling their time while looking for work. E) subject specialists without any training in journalism.
When women and minorities are highly competent but are unable to attain executive positions, this is typically called:
A. Broken windows theory. B. Glass wall. C. Transparency. D. Glass ceiling.