Palo Alto Enterprises has $300,000 in cash. They wish to invest the money in Treasury bills at 8% and use the returns to pay dividends to shareholders after a year. Alternatively, they can pay a dividend and allow shareholders to make the investment
If corporate tax rates are 35%, which option will shareholders prefer?
A) immediate cash dividend
B) dividend after one year
C) prefer half from each source
D) indifferent between options
Answer: A
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Which of the following types of expenditures is not subject to capitalization under the UNICAP rules?
A. Selling expenditures B. Cost of manufacturing labor C. Cost of raw materials D. Compensation of managers who supervise production E. All of the choices are subject to capitalization under the UNICAP rules
A package express carrier is considering expanding the fleet of aircraft used to transport packages. Of primary importance is that there is a total of $350 million allocated for purchases. Two types of aircraft may be purchased - the C1A and the C1B
The C1A costs $25 million, while the C1B costs $18 million. The C1A can carry 60,000 pounds of packages, while the C1B can only carry 40,000 pounds of packages. Of secondary importance is that the company needs at least 10 new aircraft. It takes 150 hours per month to maintain the C1A, and 100 hours to maintain the C1B. The least level of importance is that there are a total of 1,200 hours of maintenance time available per month. (a) First, formulate this as an integer programming problem to maximize the number of pounds that may be carried. (b) Second, rework the problem differently than in part (a) to suppose the company decides that what is most important to them is that they keep the ratio of C1Bs to C1As in their fleet as close to 1.2 as possible to allow for flexibility in serving their routes. Formulate the goal programming representation of this problem, with the other three goals having priorities P2, P3, and P4, respectively.
The necessary elements to establish a claim of harassment include all of the following EXCEPT:
a. The harassment was based on a protected class characteristic. b. The harassment resulted in tangible employment action or created a hostile environment. c. The harassment was welcome. d. All of these are necessary elements of the claim.
Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to which the company is dependent on foreign sales.
Answer the following statement true (T) or false (F)