Everything else equal, and for one particular firm, in which of the following capital structures would the common stockholders have to bear the greatest amount of of business risk?
A. 100 percent equity
B. 25 percent equity and 75 percent debt
C. 50 percent equity and 50 percent debt
D. 1 percent equity and 99 percent debt
E. 75 percent equity and 25 percent debt
Answer: D
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Ricardo's model of comparative advantage assumed all of the following EXCEPT
a. in each nation, labor is the only input. b. costs do not vary with the level of production. c. perfect competition prevails in all markets. d. transportation costs rise as distance increases between countries.
Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true?
A. Adonis must pay $200,000 at maturity and no interest payments. B. Adonis must pay $200,000 at maturity plus 20 interest payments of $7,500 each. C. Adonis must pay $206,948 at maturity plus 20 interest payments of $8,000 each. D. Adonis must pay $200,000 at maturity plus 20 interest payments of $8,000 each. E. Adonis must pay $206,948 at maturity and no interest payments.
Which of the following values is considered the market value when valuing inventory at lower-of-cost-or-market under U.S. GAAP?
A) sales price less the company's normal mark-up percentage B) current replacement cost C) cost plus the company's normal mark-up percentage D) historic cost
In most instances, one person can easily observe and evaluate an employee's performance.
Answer the following statement true (T) or false (F)