Discretionary income is the portion of a person's income that pays for
A. luxuries.
B. insurance.
C. food.
D. taxes.
E. rent.
Answer: A
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Zennia Company provides its employees with varying amounts of vacation per year, depending on the length ofemployment. The estimated amount of the current year's vacation cost is $135,000 . The journal entry to recordthe adjusting entry required on December 31, the end of the current year, to record the current month's accruedvacation pay is
a. $135,000 b. $67,500 c. $0 d. $11,250
______________is a proactive influence tactic that convinces someone that what you want will actually benefit them.
a. Ingratiation b. Exchange tactics c. Personal appeal d. Apprising
Pavlin Corp.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $1,150,000. If the company follows the residual dividend model, how much dividends will it pay or, alternatively, how much new stock must it issue?
A. $00; $50,000 B. $42,500; $39,500 C. $52,500; $50,500 D. $40,500; $48,500 E. $52,500; $56,000
Stock A has a beta of 0.8 and Stock B has a beta of 1.2. 50% of Portfolio P is invested in Stock A and 50% is invested in Stock B. If the market risk premium (rM - rRF) were to increase but the risk-free rate (rRF) remained constant, which of the following would occur?
A. The required return would increase for both stocks but the increase would be greater for Stock B than for Stock A. B. The required return would decrease by the same amount for both Stock A and Stock B. C. The required return would increase for Stock A but decrease for Stock B. D. The required return on Portfolio P would remain unchanged. E. The required return would increase for Stock B but decrease for Stock A.