Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term
Indicate whether the statement is true or false
TRUE
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Which one of the following could never be considered to be cash equivalents?
a. Common stock issued by a corporation b. Money market funds c. Corporate commercial paper d. U.S. Treasury bills
Currently, more than what portion of all births in the United States are to single women, most of whom are not college educated?
A. one-quarter B. one-eighth C. one-third D. more than half
Collins GroupThe Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below.
Assets Current assets$ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets$139,000,000 Liabilities and Equity Accounts payable$ 10,000,000 Accruals 9,000,000 Current liabilities$ 19,000,000 Long-term debt (40,000 bonds, $1,000 par value) 40,000,000 Total liabilities$ 59,000,000 Common stock (10,000,000 shares)30,000,000 Retained earnings 50,000,000 Total shareholders' equity 80,000,000 Total liabilities and shareholders' equity$139,000,000 The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to the data for the Collins Group. Based on the CAPM, what is the firm's cost of common stock? A. 11.15% B. 11.73% C. 12.35% D. 13.00% E. 13.65%
Each partner in a general partnership can be personally liable for the full amount of a debt the partnership owes
Indicate whether the statement is true or false