An increase in nondiversifiable risk would ________
A) cause an increase in the beta and would lower the required return
B) have no effect on the beta and would, therefore, cause no change in the required return
C) cause an increase in the beta and would increase the required return
D) cause a decrease in the beta and would, therefore, lower the required rate of return
C
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Kindest Inc. generates a net profit of $345.1 million from 17 million shares. Calculate the earnings per share of the company
A) $20,300 per share B) $2,030 per share C) $203 per share D) $2.3 per share E) $20.3 per share
A leader that takes a political stand on an issue for no other reason than to get re-elected is using which ethical theory?
A. ethical egoism B. utilitarianism C. altruism D. collectivism
Alliance Products purchased equipment that cost $120,000. It had an estimated useful life of four years and no residual value. The equipment was depreciated by the straight-line method and was sold at the end of the third year of use.For what amount should Alliance record the gain or loss if the equipment is sold for $25,000?
A. A gain of $5,000. B. A loss of $5,000. C. Neither a gain nor a loss since the equipment was sold at its book value. D. Neither a gain nor a loss since the gain would not be recognized.
________ is the practice of examining patterns and trends in historical stock prices
A) Technical analysis B) Fundamental analysis C) Event studying D) Insider trading