The announcement of a stock offering by a mature firm that seems to have financing alternatives is taken as a signal that the firm's prospects are very good.?
Answer the following statement true (T) or false (F)
False
The announcement of a stock offering by a mature firm that seems to have multiple financing alternatives is taken as a signal that the firm's prospects as seen by its management are not bright. See 12-5: Capital Structure Theory
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The petty cash fund eliminates the need for a bank checking account
Indicate whether the statement is true or false
__________ refers to a maximum amount of time beyond which the employee will have unfettered access to their retirement funds, both employee contributions and employer contributions.
A. Golden Parachutes B. Defined Benefit Plan C. Perquisites D. Vesting E. Variable Pay
It is costly and difficult to acquire qualified human resources. After a firm is able to do so the emphasis changes to ____________________ of those employees.
Fill in the blank(s) with the appropriate word(s).
P.D. Corporation is considering the purchase of a high-speed lathe that has an invoice price of $250,000
The cost to ship the lathe to P.D.'s factory is $10,000, and the existing facilities will require modifications that are expected to cost $20,000. The machine will be depreciated on a straight-line basis over its useful life of 10 years, assuming no salvage value. P.D. Corporation is planning on paying for the lathe using a line of credit at the bank that has an interest rate of 6 percent per year. The lathe is expected to increase production and sales. Sales are expected to increase by $100,000 per year. Inventory and accounts receivable balances are expected to increase by $10,000 and $20,000 respectively. Expenses to operate the lathe are $25,000 per year. P.D.'s marginal tax rate is 40%. a. Calculate the initial outlay required to fund this project. b. Calculate the incremental after-tax cash flow in year one of the project.