Managers should make use of the interest tax shield if a firm has ________
A) consistent taxable income
B) volatility in taxable income
C) consistent dividend payments
D) low tax rates
Answer: A
You might also like to view...
Adam Inc uses a perpetual inventory system. Jan. 1 On hand, 10 units at $2 each $ 20 4 Sold 8 units for $10 each 80 22 Purchased 50 units at $4 each 200 26 Sold 48 units for $10 each 480 If Adam uses the LIFO method, how much is cost of goods sold for the month of January?
a. $208 b. $560 c. $204 d. $212
When accounting for uncollectible accounts,
A) if the percentage of sales method is in use, any existing balance in the Allowance for Doubtful Accounts is the amount used in the adjusting entry. B) in current accounting practice, the most frequently used method of recognizing bad debts is the direct write-off method. C) writing off a specific receivable does not reduce the current ratio if the percentage of ending accounts receivable method is in use. D) an aging analysis results in reporting accounts receivable at their historical cost on the balance sheet.
The coupon rate is the same as the
a. market rate; b. stated rate; c. discount rate; d. serial rate; e. settlement rate.
Which of the following is true of raw material exporting economies?
A) These economies are major exporters of agricultural products. B) These economies are poor markets for large equipment and trucks. C) These economies are major exporters of manufactured goods, services, and investment funds. D) These economies are rich in one or more natural resources but poor in other ways. E) These economies consume most of their output and barter the rest.