The cost of common stock equity is ________
A) the cost of the guaranteed stated dividend expected by the stockholders
B) the rate at which investors discount the expected dividends of the firm to determine its share value
C) the after-tax cost of the interest obligations
D) the historical cost of floating the stock issue
B
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Which of the following is not true regarding the fair value option for marketable securities and derivatives?
a. Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives in Other Comprehensive Income. b. Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives, but they have no effect on any lines of the statement of cash flows. c. Firms using the fair value option mark the carrying value of the asset to fair value each period. d. If the change in fair value increases carrying value, then the firm reports a gain in income equal to the amount of the increase in carrying value during the current period. e. The cash flow from operations section shows an addition for the amount of the gain equal to the amount of the increase in carrying value of a derivative during the current period.
Within the relevant range, which of the following costs remains the same irrespective of the changes in production?
A) total mixed costs B) total operating costs C) total variable costs D) total fixed costs
With a dramatic flourish, the team leader tore the employee orientation guidelines into pieces
He then distributed blank pieces of paper to the team and asked them to envision the perfect orientation process without regard to how it has always been done. This team is probably engaging in process reengineering. Indicate whether the statement is true or false
The main US antitrust statutes are the Sherman Act and the Clayton Act
Indicate whether the statement is true or false