A distributor makes investment decisions regarding the transportation infrastructure and then makes operating decisions to try to maximize the return from these assets
Indicate whether the statement is true or false.
Answer: FALSE
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Vince declares personal bankruptcy in 2015. Which of the following debts will NOT be discharged by the bankruptcy?
A) $12,000 he owes his ex-wife for spousal support B) $9,000 he owes the bank on a line of credit C) $8,000 he owes in unpaid rent D) $20,000 he owes in unpaid income tax E) none of these debts would be discharged in a personal bankruptcy
Meson Productions is a price-taker
Meson produces large spools of electrical wire in a highly competitive market; thus, the company uses target pricing. The current market price of the electric wire is $770 per unit. The company has $3,100,000 in average assets, and the desired profit is a return of 4% on assets. Assume all products produced are sold. The company provides the following information: Sales volume 110,000 units per year Variable costs $680 per unit Fixed costs $14,000,000 per year If variable costs cannot be reduced, how much reduction in fixed costs will be needed to achieve the profit target? A) $4,224,000 B) $14,000,000 C) $4,100,000 D) $14,124,000
Ewing Oil has $5B of excess cash and has announced an open market stock repurchase. Prior to the announcement, the stock was trading for $25 per share and there are 2.5B shares outstanding
Assume that the stock repurchase is executed at the pre-repurchase price. Sue Ellen has 100 shares of Ewing Oil. She bought the shares for $25 per share. Sue Ellen pays a tax rate of 20% on capital gains and 34% on dividends. What is Sue Ellen's after-tax wealth if she sells the same proportion of shares as Ewing repurchases, and that she receives the same price that Ewing pays? Assume that Sue Ellen sells her remaining shares after the repurchase at the price that prevails after the repurchase. A) $1,800 B) $1,965 C) $2,250 D) $2,500 E) $2,625
Carlos, a manager at Carz Autobody, always appears to be happy. He rarely exhibits negative emotions and moods and is always optimistic about himself and others. If you were his manager, you would tell Carlos that he needs to reduce his negative affectivity.
Answer the following statement true (T) or false (F)