Stock prices move opposite changes in cash flows expected from the stock in the future, but they move in the same direction as changes in rates of return.

Answer the following statement true (T) or false (F)


False

If investors demand higher (lower) returns to invest in stocks, then prices should fall (increase). If investors expect their investments to generate lower (higher) future cash flows, then prices should also fall (increase). See 7-4: Changes in Stock Prices

Business

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One of the five basic business processes is the warehousing cycle.

Answer the following statement true (T) or false (F)

Business

Woodside Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Style-R table is $7.20 based on 8 square feet of vinyl at a cost of $.90 per square foot. A production run of 1,00 . tables in January resulted in usage of 8,300 square feet of vinyl at a cost of $.80 per square foot, a total cost of $7,055 . If the materials price variance was recorded when

the material was issued to production, that variance was: a. $290 favorable. b. $830 unfavorable. c. $290 unfavorable. d. $830 favorable.

Business

______ method results in a straight line that minimizes the sum of the squares of the differences between the line and each of the actual observations.

A. Best-fit B. Straight-line C. Least-squares D. Linear-line

Business

A company has estimated its effective capacity is 1,000 units produced per day. If the company wishes to maintain a capacity utilization of at least 95%, what must its actual output be?

a. 1,000 units per day b. 1,150 units per day c. 950 units per day d. Impossible to determine from the information provided

Business