"Members should act in a way that will service the public interest, honor the public trust, and demonstrate commitment to professionalism." This is the Public Interest Principle of the AICPA's Code of Professional Conduct
Indicate whether the statement is true or false
True
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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be:
A. 70%. B. 10%. C. 30%. D. 60%. E. 40%.
Which of the following statements is CORRECT?
A. When calculating the cost of preferred stock, a company needs to adjust for taxes, because preferred stock dividends are deductible by the paying corporation. B. All else equal, an increase in a company's stock price will increase its marginal cost of retained earnings, rs. C. All else equal, an increase in a company's stock price will increase its marginal cost of new common equity, re. D. Since the money is readily available, the after-tax cost of retained earnings is usually much lower than the after-tax cost of debt. E. If a company's tax rate increases but the YTM on its noncallable bonds remains the same, the after-tax cost of its debt will fall.
Which of the following statements is not correct with regards to the Wilcoxon Signed-Rank Test?
a. In large-sample problems, the Wilcoxon test in usually not less efficient than the t-test and may be more efficient if the underlying distribution is not approximately normal. b. If the underlying distribution is normal, it is often preferred to use the t test because it will have more power associated. c. If the sample has an underlying distribution that is normal then either the signed-rank test or the t-test could be used to test hypotheses about . d. The Wilcoxon signed-rank test is designed for data that are basically symmetric but outlier-prone.
A company has the following data for the year.Sales revenue$7,200,000Cost of goods sold$5,800,000Net income$1,600,000Average total assets$9,100,000Average total equity$6,300,000Average shares of common stock4,000,000Closing stock price$5.40Required: Calculate the following profitability ratios (round to one decimal place).1. Gross profit ratio2. Return on assets3. Profit margin4. Asset turnover5. Return on equity6. Price-earnings ratio
What will be an ideal response?