Even if two firms operate in the same industry, they may prefer different choices of debt-equity ratios
Indicate whether this statement is true or false.
Answer: TRUE
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You want to buy new kitchen appliances 2 years from now, and you plan to save $8,200 per year, beginning one year from today. You will deposit your savings in an account that pays 6.2% interest. How much will you have just after you make the 2nd deposit, 2 years from now?
A. $15,260 B. $16,063 C. $16,908 D. $17,754 E. $18,642
Which of the following is correct about the payback method?
A) It considers only the cash flows that occur during the payback period. B) It considers an asset's profitability. C) It is normally the only method used when deciding whether to invest in an asset. D) It is difficult to calculate.
McClintock Inc had the following information available from its 2011 balance sheet and income statement: Insurance expense $15,000 Prepaid insurance - beginning 30,000 Prepaid insurance - ending 25,000 What amount would be reported as cash outflows for insurance on the statement of cash flows for 2011 using the direct method?
A) $70,000 B) $10,000 C) $20,000 D) $25,000
Unless specified in the charter, a corporation has a
A. legal life of one decade. B. life of seventeen years, which is renewable. C. life of fifty years. D. perpetual life. E. legally recognized life, which varies from state to state.