Which of the following statements is FALSE?
A) In a rights offer, a firm offers the new shares only to existing shareholders.
B) Secondary shares are shares sold by existing shareholders, including the company's founder.
C) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
D) In the United States, most offers are rights offers.
Answer: D
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Calculate the unit product cost using absorption costing when production is 200 units, 400 units, and 800 units.
McMillan, Inc. has the following cost data:
Which of the following is not a cause of the distribution challenges in BOP countries?
A. Poor and illiterate population B. Large rural population C. Lack of transportation infrastructure D. Too much channel conflict E. Need to invest in and train new channel members
Lori opened a savings account five years ago. Her initial investment was $2,000. Today, she decided to close the account by withdrawing all of the money in her account. The total balance was $3,125. ? The total amount of interest compounded over the five years was $1,125.?
Indicate whether the statement is true or false
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on October 1 is:
A) Debit Petty Cash $300; credit Cash $300. B) Debit Cash $50; credit Petty Cash $50. C) Debit Miscellaneous Expense $50; credit Cash $50. D) Debit Petty Cash $50; credit Accounts Payable $50. E) Debit Petty Cash $50; credit Cash $50.