According to Beaver's univariate model, which one of the following ratios would be the least useful for forecasting financial failure?
a. Quick ratio
b. Cash flow/total debt
c. Net income/total assets
d. Total debt/total assets
a
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Sam Jones is the president of Apollo Finance, a payday lender. The company's proxy statement contains the following description of Mr. Jones' pay package.Mr. Jones is eligible for an annual incentive bonus equal to 1% of Net Income of the company and is eligible for an additional bonus based upon annual increases in EPS only after earnings exceed 15% over the prior year. The additional bonus is determined as follows:EPS Growth Additional BonusEPS increases up to 14.9% $0EPS increases of 15.0% to 24.9% 2% of the earnings increase from the prior yearEPS increases of 25.0% to 34.9% 3% of the earnings increase from the prior yearEPS increases above 35.0% 4% of the earnings increase from the prior yearAssume no change in the number of shares of outstanding stock during the
year.Required:a. Suppose that Apollo Finance had $75 million of Net Income for the year. How much of a bonus would Mr. Jones receive if the EPS increase for the year was 12%?b. Suppose that Apollo Finance had $75 million of Net Income for the year. How much of a bonus would Mr. Jones receive if the EPS increase for the year was 28%? What will be an ideal response?
Forever Jewelers uses the gross method and a perpetual inventory system. On April 2, Forever sold merchandise with a cost of $1,400 for $5,400 to a customer on account with terms of 1/15, n/30. Which of the following journal entries correctly records the sales revenue?
A university enrolled 200 graduate students in the Fall of 2011. However, the enrollment rate was only slightly affected following a 12-percent hike in tuition the following fall. This illustrates ________ demand
A) derived B) negative C) highly elastic D) composite E) inelastic
Unambiguous and easily understandable words help improve which aspect of writing?
A) Persuasiveness B) Clarity C) Conciseness D) Professionalism E) Content