As a general rule, the optimal capital structure is the one that:
A. maximizes expected EPS and the price per share of common stock.
B. minimizes the interest rate on debt and maximizes the expected earnings per share.
C. minimizes the required rate on equity and maximizes the stock price.
D. maximizes the price per share of common stock and minimizes the weighted average cost of capital.
E. minimizes the expected earnings per share and maximizes the weighted average cost of capital.
Answer: D
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The choice of an appraisal method should be largely based on
A. the preferred technique of the personnel department. B. the purpose of the appraisal. C. the reaction of employees. D. what skills the developer of the system possesses.
A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana. The primary objective of the mill is to provide the farmers with a place to take their crop for processing that will reduce their transportation costs
The members of the co-op believe that the center-of-gravity method is appropriate for this objective. While there are over 200 sugar cane farms in the region, they are tightly clustered around six villages. Using the data below, use the center-of-gravity method to calculate the coordinates of the best location for this mill. All mileage references use the city of Lake Charles as (0,0). Village Miles East of Lake Charles Miles North of Lake Charles Sugar Cane tonnage Arceneaux 90 10 240,000 Boudreaux 140 60 320,000 Cancienne 20 70 450,000 Darbonne 50 20 120,000 Evangeline 100 80 60,000 Fontenot 10 120 140,000
Working capital management is the day-to-day management of the operating needs of the company via current assets and current liabilities
Indicate whether the statement is true or false.
Cabell Corp. bonds pay an annual coupon rate of 10%. If investors' required rate of return is now
12% on these bonds, they will be priced at A) a premium to par value. B) par value. C) a discount to par value. D) Cannot be determined without knowing the number of years to maturity.