Which of the following is a capital component for the purpose of calculating the weighted average cost of capital in capital budgeting??
A. ?The after-tax cost of long-term debt
B. ?The after-tax cost of common stock
C. ?The after-tax cost of preferred stock
D. ?The after-tax cost of retained earnings
E. ?The after-tax cost of new equity
Answer: A
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Which of the following is not a question that Bossidy and Charan believe a strong strategic plan must address?
A. How will deviations from the plan be handled? B. What is the assessment of the external environment? C. What are the critical issues facing the business? D. Can the business execute the strategy? E. Are the short term and long term balanced?
When you ______ an emotion you exaggerate your facial expressions to reflect the degree of expression you believe audience members expect you to exhibit.
a. intensify b. deintensify c. neutralize d. mask
Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,663, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $83,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):Use Exhibit 13B-1 and Exhibit 13B-2 above to determine the appropriate discount factor(s).
A. 19% B. 14% C. 22% D. 16%
Alice is browsing in a commercial art gallery when she sees a painting that she likes. Arthur, who is the manager of the gallery, tells her that in his opinion the painting is a genuine Leroy Neiman work. Based upon that representation, Alice buys the work for $5,000 . She later discovers that the painting is only a cheap copy of the original that is worth no more than $50 . Arthur has:
a. breached an express warranty to Alice that the painting is a Neiman work. b. breached the warranty of merchantability. c. not breached a warranty because he was merely expressing his opinion. d. breached an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose.