_____ measures the net assets generated by a firm from operations exceeding dividends declared
a. Assets
b. Liabilities
c. Shareholders' equity
d. Additional Paid-in-Capital
e. Retained earnings
E
You might also like to view...
In the ______, managers offer invisible remedies to those harmed by organizational decisions and policies.
A. Gunsmoke Effect B. Robin Hood Effect C. Revenge Effect D. Allocation Effect
Everything else equal, an asset's value is:
A. inversely related to the rate of return investors require to purchase it. B. directly proportional to the cost of debt used in the capital budgeting process of the firm. C. not related to the cash flows that the asset is expected to generate during its life. D. inversely related to the cost of debt used in the capital budgeting process of the firm. E. directly proportional to the rate of return investors require to purchase it.
Which one of the following statements is TRUE?
A. Management is said to be entrenched when senior managers are unlikely to be fired. B. A company's matching contribution to a retirement plan is a nonpecuniary benefit. C. Company sponsorship of a local charity is an example of a nonpecuniary benefit. D. A manager/shareholder agency conflict arises when shareholders sell their stock even though management says the stock is undervalued. E. A manager/shareholder agency conflict arises when the board of directors pays a larger dividend than the firm's earnings could support.
Be cautious of ________ expressed on a per-unit basis when weighing make-or-buy decisions. The total value (instead of the per unit value) is relevant to the decision.
A. variable costs B. relevant costs C. opportunity costs D. fixed costs