Other things equal, an increase in the firm's tax rate will increase the WACC for a firm that has both debt and equity financing
Indicate whether the statement is true or false.
Answer: FALSE
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Which of the following factors is involved in studying cost-volume-profit relationships?
a. product mix b. variable costs c. fixed costs d. all of the above
Investors in bonds sometimes hold a _____ option, meaning they can force the issuing company to repay the bonds prior to maturity under specified contractual conditions
a. convertible b. call c. put d. serial e. short-term
Which of the following statements is NOT CORRECT?
A. When a corporation's shares are owned by a few individuals, we say that the firm is "closely, or privately, held." B. "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. C. The stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the SEC. D. When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an IPO," and the market for such stock is called the new issue or IPO market. E. It is possible for a firm to go public and yet not raise any additional new capital for the firm itself.
As a new manager, you are delighted with your new job (and higher pay), but now it's time for the annual performance appraisals of the staff you supervise. Worse, you have been directed to downsize your department by 10%. Many of your colleagues have offered you advice as to how to proceed. Among the following, which would NOT be good advice?
a. use a forced distribution method of performance appraisal, which will help you achieve a 10% cut in department staff easily, and avoid legal claims b. as you conduct the performance appraisals, speak gruffly to each employee, in order to prepare them for possible termination c. make clear that no matter how well they have done their jobs, it is no guarantee that they will survive the cut; don't allow or answer any questions d. none of these would be good advice e. all of these would be good advice