According to the Fisher effect, if the real interest rate is zero, the nominal interest rate must be equal to the expected inflation rate

a. True
b. False


a

Business

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Honig Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 10,000 shares outstanding Dividends were in arrears for 2008 and 2009 . On December 31, 2010, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and

common stockholders, respectively, are a. $200,000 and $200,000. b. $160,000 and $240,000. c. $240,000 and $160,000. d. $80,000 and $320,000.

Business

If 30,000 units of materials enter production during the first year of operations, 25,000 of the units are finished, and 5,000 are 50% completed, the number of equivalent units of production would be 28,500

Indicate whether the statement is true or false

Business

What factors do you have to consider when selecting a target industry for a venture:

a. The technology life cycle stage of the industry overall, often reflected by new technologies, products, and services recently announced by players in the industry b. The channels of distribution within an industry c. No existing barriers to entry that might make your life extremely difficult as an entrepreneur d. All of the above

Business

The difference between the left-hand side and right-hand side of a greater-than-or-equal-to constraint is referred to as

A) surplus. B) constraint. C) slack. D) shadow price. E) None of the above

Business