As costs are used up in the production of revenues, they are said to expire. Expired costs are called assets
Indicate whether the statement is true or false
False
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California Milk Advisory Board has been running a national advertising campaign on television. The ad features "happy cows" and carries the tagline "Great cheese comes from happy cows. Happy cows come from California." The board developed a logo that is prominently displayed in the ads, and presumably the expectation is that a consumer would look for that logo on a wedge of cheese in the dairy case, selecting it over cheese from elsewhere. This is an example of ________ advertising.
A. pioneering B. comparative C. product D. competitive E. institutional
Miranda of the local Fried Chicken hotspot tells Willie, the owner, that she does not understand his instructions to manage the frying area. She says in addition to Willie screaming orders at her, Willie is asking too many questions, and with the customers demanding things, she has trouble concentrating on any one task. Willie thought Miranda just did not care to follow instructions. He did not realize that she was doing her best, but was just overloaded with too many people needing her attention. This is an example of which of the barriers to communication discussed in the book?
a. Filtering b. Emotions c. Information Overload d. Differing Perceptions
Increased product variety and shrinking product life cycles usually result in
A) the deliberate phase-out of older products. B) a decrease in overall uncertainty for the supply chain. C) an increase in the time allowed for a supply chain to develop specific competencies. D) a deliberate proliferation in the variety of components used for all products produced.
Anson Jackson Court Company (AJC)
The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6%. Its earnings before interest and taxes (EBIT) are $89,000, and it is a zero growth company. AJC's current cost of equity is 10%, and its tax rate is 25%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00. Refer to the data for Anson Jackson Court (AJC). AJC is considering moving to a capital structure that is comprised of 25% debt and 75% equity, based on market values. The new funds would be used to replace the old debt and to repurchase stock. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on debt to rise to 6.56%, while the required rate of return on equity would rise to 10.07%. If this plan were carried out, what would be AJC's new WACC and total value? WACC; Total Market Value A. 8.28%; $690,034 B. 8.78%; $760,034 C. 9.28%; $660,034 D. 9.28%; $820,034