Answer the following statements true (T) or false (F)
1. The ex dividend period begins four business days prior to the payment date.
2. The payment of cash dividends to corporate stockholders is decided based on the recommendation of the auditors.
3. The repurchase of common stock results in a type of reverse dilution, since the earnings per share increases as the number of shares outstanding falls.
4. The repurchase of shares reduces the number of outstanding shares.
5. In a tender offer share repurchase, a firm announces the price it is willing to pay to buy back shares and the quantity of shares it wishes to repurchase.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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The cost of acquiring new customers is less costly than the cost of retaining current ones.
Answer the following statement true (T) or false (F)
________ refers to the unauthorized copying or production of a product
A) Accommodation B) Embezzlement C) Counterfeiting D) Expropriation
The income statement is an important financial statement for all of the following reasons, except
A) the income statement helps shareholders evaluate management's operating effectiveness. B) past income statements can be useful indicators in predicting current and future cash dividend payments as well as future stock prices. C) the income statement provides useful information concerning the corporation's ability to generate sufficient cash flows from operations for use in payment of its operating obligations. D) the income statement reports the amount of net cash inflows resulting from operating, financing, and investing activities to users.
Which project has the highest profitability index?
The following information is provided by Graham Company:
A) Project A
B) Project B
C) Project C
D) Project D