ROCE will exceed ROA whenever ROA exceeds the after-tax cost of borrowing plus any dividends required for preferred shareholders. Which of the following is/are true?
a. The bond holders earn a higher return, but they undertook more risk in their investment.
b. The preferred shareholders earn a lower return, but they undertook more risk than the common shareholders in their investment.
c. The common shareholders earn a higher return, but they undertook more risk in their investment.
d. Using lower-cost borrowed funds and then earning a rate of return on those funds higher than their cost increases the return to the common shareholders.
e. Choices c and d.
E
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Which of the following symbols represents the experimental effect?
A) O B) X C) C D) E E) none of the above
Which of the following is a transaction site?
A) Wikipedia B) Yahoo C) eBay D) IMDB E) Facebook
Qualitative information that a manager might evaluate in making a decision would include all of the following EXCEPT ________.
A) calculating the breakeven point under two different alternatives B) the effect of layoffs on employee morale C) the reduction in control over delivery time due to subcontracting D) upsetting regular customers by offering discounts to selected customers
The best-accepted axiom about keeping customers happy is to
A) keep prices lower than the competition. B) get involved in relationship selling. C) stay informed about what the competition is doing. D) maintain high-quality service.