Why would a company calculate its operating margin?
A. to evaluate how efficiently managers are turning inventory over
B. to determine how efficiently it is using resources to make and sell products
C. to monitor if managers are collecting revenue from customers
D. to assess if it has the resources to meet the claims of short-term creditors
E. to evaluate how well resources are being used to generate profits
Answer: B
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What did Blau (2002) find when he investigated the relationship between size and differentiation (meaning the number of organizational levels in hierarchy, number of departments, and number of job titles)?
a. The rate of differentiation decreased as size increased b. Differentiation increased as size increased c. Differentiation decreased as size increased d. Both a and b
The Homestead strike in 1892 and the Pullman strike in 1894 were representative of the clash between employers and the AFL over who had the right to establish:
A. Working conditions. B. Work standards and production decisions. C. Wage rates. D. Hours of work.
Which of the following securities will likely have the highest default risk premium?
A) Bbb-rated corporate bond maturing in 2020 actively traded on a major exchange B) Aaa-rated corporate bond maturing in 2015 not actively traded C) U.S. Treasury bond maturing in 2027 D) U.S. Treasury bill
Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The company's marginal tax rate is 40.00%, but Congress is considering a change in the corporate tax rate to 45.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? Do not round your intermediate calculations.
A. -0.36% B. -0.42% C. -0.44% D. -0.30% E. -0.35%