What is negotiation? How does one become a "holder" of an instrument?
Negotiation is an instrument's voluntary or involuntary transfer by a person other than the issuer in such a manner that the transferee becomes a holder. If the instrument is payable to order, it is negotiated by delivery with any necessary indorsement. If payable to bearer, it is negotiated by delivery. A person becomes a holder by receiving possession of an instrument drawn, issued, or indorsed to him, or to his order, or to bearer, or in blank.
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Answer the following statements true (T) or false (F)
Under comprehensive allocation, the tax liability is equal to the income expense for the period.
When a company is in financial difficulty and cannot fully pay all of its creditors, the first lenders to be paid are the ________
A) stockholders B) sinking fund holders C) junior debtholders D) senior debtholders
A stock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires a 12 percent return on equity investments?
A) $38 B) $33.50 C) $34.50 D) $33.93
Steinhoff Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor that could be used by another division in the company, the Safety Products Division, in one of its products. Data concerning that sensor appear below: Capacity in units 51,000Selling price to outside customers$56Variable cost per unit$37Fixed cost per unit (based on capacity)$14?The Safety Products Division is currently purchasing 4,000 of these sensors per year from an overseas supplier at a cost of $48 per sensor.?Assume that the Valve Division is selling all of the valves it can produce to outside customers. From the standpoint of the Valve Division, what is the lost contribution margin if the valves are transferred internally rather than sold to
outside customers? A. $969,000 B. $120,000 C. $20,000 D. $76,000