Complete the statement, using the following terms: increases, decreases, or have no effect on. Decreases in fixed costs ________ contribution margin per unit and ________ the breakeven point.
What will be an ideal response?
Decreases in fixed costs have no effect on contribution margin per unit and decrease the
breakeven point.
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There is reason to believe that pay secrecy can do all of the following EXCEPT
A. generate distrust in the compensation system. B. reduce employee motivation. C. inhibit organizational effectiveness. D. generate feelings of commitment.
Which of the following is true of the assumptions outlined by the capital structure theory published by Professors Franco Modigliani and Merton Miller (MM)??
A. ?Personal income taxes are deductible. B. ?Brokerage costs do not exist. C. ?The value of the firm will be maximized by financing completely through equity. D. ?A high debt/assets ratio decreases the value of the firm. E. ?Bankruptcy costs are high when the firm uses no debt.
A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT?
A. The bond's expected capital gains yield is zero. B. The bond's yield to maturity is above 9%. C. The bond's current yield is above 9%. D. If the bond's yield to maturity declines, the bond will sell at a discount. E. The bond's current yield is less than its expected capital gains yield.
A 15-year mortgage compared to a 30-year mortgage has all of the following except
A) a lower appraisal fee. B) less interest over the life of the loan. C) higher payments. D) a faster buildup of equity.