The corporate valuation model cannot be used unless a company pays dividends.
Answer the following statement true (T) or false (F)
False
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The degree to which a test measures the same thing consistently is known as its
A. legality. B. reliability. C. validity. D. significance. E. dependability.
Variable costing is a method of reporting that deals only with a manager's controllable, variable costs
Indicate whether the statement is true or false
A corporate manager decides to build a new store on a lot owned by the corporation that could be
sold to a local developer for $250,000. The lot was purchased for $50,000 twenty years ago. When determining the value of the new store project, A) the opportunity cost of the lot is $250,000 and should be included in calculating the value of the project. B) the cost of the lot for valuation purposes is $50,000 because land does not depreciate. C) the incremental cash flow should be the $50,000 original cost less accumulated amortization. D) the cost of the lot is zero since the corporation already owns it.
Suppose that when these bonds were issued, Luther received a price of $972.42 for each bond. What is the likely rating that Luther's bonds received?
A) AA B) BBB C) B D) A