Why must care be taken when comparing a firm's share price to its operating income?
A) Both share price and operating income are related to the whole firm.
B) Share price is a quantity related to the entire firm, while operating income is an amount that is related solely to equity holders.
C) Both share price and operating income are related solely to equity holders.
D) Share price is a quantity related to equity holders, while operating income is an amount that is related to the whole firm.
Answer: D
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The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as ________.
A. industrial surveillance B. marketplace espionage C. economic espionage D. industrial espionage E. patent infringement
Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing
new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Crandal's flotation expense on the new bonds will be $50 per bond. Crandal's marginal tax rate is 35%. What is the pre-tax cost of debt for the newly-issued bonds? A) 10.25% B) 8.76% C) 7.49% D) 8.12%
Charlie is at the top of her company's organization chart. Which of the following is most likely to be her job title?
A. Executive manager B. President C. Manager D. Vice president, operations E. Organization leader
Leader-member relations can typically be modified through all of the following except:
A. Bringing new or unusual tasks or problems to the unit B. Requesting particular people for work in the group C. Volunteering to direct difficult or troublesome subordinates D. Transferring particular subordinates out of the unit