What is the minimum amount of shares of a public corporation that might give activist shareholders effective control of the corporation?
A) 51%
B) 49%
C) 25%
D) 10%
E) 30 %
D
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In the second half of the 1990s, the average annual real return to the stock market was about _____ each year.
A. 23 percent. B. 10 percent. C. 5 percent. D. 2 percent.
Answer the following statements true (T) or false (F)
1. In a manufacturing company, wages and benefits of assembly line workers are period costs. 2. In a manufacturing company, 3. In a manufacturing company, wages and benefits of factory managers are treated as product costs. 4. Product costs, such as direct materials costs, are expensed in the period they are incurred. 5. The three categories of period costs are direct materials, direct labor, and manufacturing overhead.
Competition is useful for teams when:
a. The competition is about money rather than social rewards. b. The competition is with teams from other organizations. c. The competition is within the team rather than with other teams. d. The competition is focused on the main goals of the team.
Klein Cosmetics has a profit margin of 5.0%, a total assets turnover ratio of 1.5 times, no debt and therefore an equity multiplier of 1.0, and an ROE of 7.5%. The CFO recommends that the firm borrow money, use the funds to buy back stock, and raise the equity multiplier to 2.0. The size of the firm (assets) would not change. She thinks that operations would not be affected, but interest on the new debt would lower the profit margin to 4.5%. This would probably be a good move, as it would increase the ROE from 7.5% to 13.5%.
Answer the following statement true (T) or false (F)