Warren Supply Inc. is evaluating its capital budget. The company finances with debt and common equity, but because of market conditions, wants to avoid issuing any new common stock during the coming year. It is forecasting an EPS of $3.00 for the coming year on its 500,000 outstanding shares of stock. Its capital budget is forecasted at $800,000, and it is committed to maintaining a $2.00 dividend per share. Given these constraints, what percentage of the capital budget must be financed with debt?
A. 30.54%
B. 32.15%
C. 33.84%
D. 35.63%
E. 37.50%
Answer: E
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Cognitive dissonance refers to
A. the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives. B. feelings of guilt for purchasing a product or service that was not consistent with a consumer's moral or ethical beliefs. C. feelings of discontent before a purchase has been made when the customer finds out that he or she paid more for the product than necessary. D. feelings of discomfort associated with purchasing something purely for the sake of prestige. E. feelings of discontent after a purchase has been made when the product fails to perform up to expectations.
______ moral development is an approach to understanding ethical decision-making that focuses on the mental determination of right and wrong based on values and social judgments.
A. Situational B. Deontological C. Hypernormal D. Cognitive
Midway through the life of an amortized loan, the percentage of the payment that represents interest must be equal to the percentage that represents repayment of principal. This is true regardless of the original life of the loan or the interest rate on the loan.
Answer the following statement true (T) or false (F)
A time draft is payable at a definite future time
Indicate whether the statement is true or false