The statement of cash flows explains the difference between net income as shown on the income statement and the net cash flows generated from operations
Indicate whether the statement is true or false
T
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The law of negligence holds our behavior up to a(n) ________ standard of conduct.
A. objective B. criminal C. strict liability D. subjective
In a meeting of the creditors, the bankruptcy judge questions the debtor
Indicate whether the statement is true or false
Which of the following statements concerning warrants is CORRECT?
A. Bonds with warrants and convertible bonds both have option features that their holders can exercise if the underlying stock's price increases. However, if the option is exercised, the issuing company's debt declines if warrants are used but remains the same if convertibles are used. B. Warrants are long-term put options that have value because holders can sell the firm's common stock at the exercise price regardless of how low the market price drops. C. Warrants are long-term call options that have value because holders can buy the firm's common stock at the exercise price regardless of how high the stock's price has risen. D. A firm's investors would generally prefer to see it issue bonds with warrants than straight bonds because the warrants dilute the value of new shareholders, and that value is transferred to existing shareholders. E. A drawback to using warrants is that if the firm is very successful, investors will be less likely to exercise the warrants, and this will deprive the firm of receiving any new capital.
The internal rate of return is
A) the discount rate that makes NPV negative and the PI greater than one. B) the rate of return that makes the NPV positive. C) the discount rate that makes the NPV positive. D) the discount rate that equates the present value of the cash inflows with the present value of the cash outflows.