Which of the following is true about a growth stock?
A. It pays a fixed amount of dividends every year.
B. It has voting rights and generally pays a fixed amount of interest each year until maturity.
C. It pays large and relatively constant dividends each year.
D. It pays cumulative dividends at the time of maturity.
E. It generally pays little or no dividends because the firm retains most of its earnings to fund developmental opportunities.
Answer: E
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In a statement of cash flows prepared using the direct method, if wages payable increased during the year, the cash paid for wages would be
a. the same as salary expense. b. salary expense plus wages payable at the beginning of the year. c. salary expense plus the increase in wages payable from the beginning to the end of the year. d. salary expense less the increase in wages payable from the beginning to the end of the year.
A form of business association organized to carry out a particular business enterprise is a:
a. sole proprietorship. b. tenancy in common. c. joint venture. d. competitor.
Capital budgeting is designed to show
a. how many projects, in total, should be selected. b. which project is most profitable. c. which of several mutually exclusive projects should be selected. d. how to evaluate projects based on rates of return.
The readiness process will clarify what needs to be done and provide more focus for the project team
Indicate whether the statement is true or false