Describe your short-term investments and how they affect your personal budget, income statement, and balance sheet in terms of return and liquidity
What will be an ideal response?
Answer: This is a subjective answer. A checking account, NOW account, MMDA, savings account, CD, T-bills, and MMF are all investments. The higher the return, the greater the wealth. However, liquidity is also a factor that should be balanced with return.
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Which of the following is not one of Clayton Christensen's principles of disruptive innovation?
A) Companies depend on customers for resources. B) Small markets don't satisfy the growth needs of large companies. C) Markets that don't exist can't be analyzed. D) Technology supply may not equal market demand. E) E-commerce activities can be divided into three categories.
When a bond issue is converted into common stock, total contributed capital is increased by the carrying value of the bonds converted
Indicate whether the statement is true or false
Walmart, Costco, and Southwest Airlines serve customers who want reliable, good-quality products or services that are also reasonable and easily available. These companies are all known for pursuing a value discipline known as ________
A) operational excellence B) customer intimacy C) product differentiation D) product leadership E) focus
Calculate the IRR of the project. Show your computations.
Clear Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of four years with no residual value. The cash inflows are as shown below:
