The degree of financial leverage can be explained by using the following 2 variables: operating
income and earnings per share.
Indicate whether the statement is true or false
TRUE
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Which of the following can induce a firm to expand into the international arena?
A) Consumer preferences in the domestic market vary widely. B) Average income level of domestic consumers is high. C) The firm operates in an industry that caters to the mass market. D) The firm finds that the domestic market is almost saturated. E) The firm is yet to achieve economies of scale even though the domestic market has potential.
Refer to the Cowden Properties example. Under the installment method, how much net profit would Cowden recognize in year 1?
a. $1,667 b. $2,667 c. $3,333 d. $3,667 e. $5,000
A restriction/appropriation of retained earnings
A) decreases total assets B) increases total retained earnings C) decreases total retained earnings D) has no effect on total retained earnings
The Railway Labor Act empowers the president of the United States to create a _______________________________ board if a strike threatens to deprive essential transportation service.
Fill in the blank(s) with the appropriate word(s).