If a corporation has an average tax rate of 40 percent, the approximate, annual, after-tax cost of debt for a 15-year, 12 percent, $1,000 par value bond, selling at $950 is ________
A) 10 percent
B) 10.6 percent
C) 7.7 percent
D) 6.0 percent
C
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A decision that follows standard operating procedures, and where there is no need to explore alternative solutions because the optimal solution has already been identified and documented is a(n):
a. programmed decision b. heuristic decision c. intuitive decision d. creative decision
Product costs are used only in managerial accounting.
Answer the following statement true (T) or false (F)
"Reverse" discrimination means:
a. establishing quotas for the hiring of women and persons of color b. disparate treatment c. disparate impact d. none of these
A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of the following statements is true?
A. The firm will definitely lose money in this situation. B. Once the break-even point is reached; the company will increase income at the rate of $3 per unit. C. The situation described is not possible and there must be an error. D. Each unit "contributes" $3 toward covering the fixed costs of $900. E. Each unit "contributes" $3 toward covering the fixed costs of $900 and once the break-even point is reached, the company will increase income at the rate of $3 per unit.