Which of the statements below is NOT true?
A) Preferred stock is a form of hybrid equity financing.
B) Retained earnings are a form of hybrid equity financing.
C) Common stock is a form of equity financing.
D) Corporate bonds are a form of debt financing.
Answer: B
Explanation: B) Retained earnings are internal equity financing.
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Compute the payback period for each investment. Show your calculations and round to one decimal place.
Zebulon, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information is available:
Antonin, a federal judge, retires. The vacant position will be filled by a judge
a. appointed by the United States Supreme Court. b. elected by voters. c. appointed by the President. d. appointed by Congress.
In the context of limited partnerships, which of the following is an aspect that differentiates limited partners from general partners?
A. Duration of the partnership in a company B. Sharing of the profits of a company C. Financial contribution to a company D. Participation in the management of a company
Explain the 80/20 rule.
What will be an ideal response?