Two companies with the same margin of safety in dollars will also have the same total contribution margin.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Assuming that other assets have been properly valued, if the market value of the reporting unit is equal to the carrying value of the assets of the reporting unit, the presumption is that goodwill has been impaired
a. True b. False Indicate whether the statement is true or false
According to the human resource management school, equity will be achieved only:
A. If employer actions are regulated by employment laws. B. When workers produce to their maximum capabilities. C. If employers become responsive to employee needs. D. When market supply and demand are in balance.
[The following information applies to the questions displayed below.] Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 31, Year 3, Gilligan's stockholders' equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized, 55,000 shares issued and outstanding?? $330,000 Paid-in capital in excess of par - Common?? 440,000 $770,000 Retained earnings 1,400,000 Total Stockholders' Equity $2,170,000 At the end of Year 3, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share.Which of the following journal entries will be used to record the
stock dividend? A.
| Retained earnings | 60,500 | |
| Common stock | 16,500 | |
| Paid-in capital in excess of par value - Common | 44,000 |
B.
| Common stock | 60,500 | |
| Retained earnings | 16,500 | |
| Paid-in capital in excess of par value - Common | 44,000 |
C.
| Dividends | 108,500 | |
| Cash | 108,500 |
D.
| Retained earnings | 16,500 | |
| Common stock | 16,500 |
A currency swap is equivalent to a
A) currency option, with the exercise price equal to the current spot rate. B) longdated forward foreign exchange contract, where the forward rate is the current spot rate. C) interest rate swap, where the basis is the differential between the fixed and floating interest rates. D) short-term currency futures contract.