Which of the following statements is FALSE?
A) The more cash a firm uses to repurchase shares, the less it has available to pay dividends.
B) Free cash flow measures the cash generated by a firm after payments to debt or equity holders are considered.
C) We estimate a firm's current enterprise value by computing the present value (PV) of the firm's free cash flow.
D) We can interpret the enterprise value of a firm as the net cost of acquiring the firm's equity, taking its cash, and paying off all debts.
Answer: B
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A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:
A. Time ticket. B. Factory Overhead Ledger. C. Payroll Register. D. General Ledger. E. Factory payroll record.
Discuss efficient consumer response (ECR) and the continuous replenishment program (CRP)
What will be an ideal response?
Which of the following statements is CORRECT?
A. Corporations are allowed to exclude 70% of their interest income from corporate taxes. B. Corporations are allowed to exclude 70% of their dividend income from corporate taxes. C. Individuals pay taxes on only 30% of the income realized from municipal bonds. D. Individuals are allowed to exclude 70% of their interest income from their taxes. E. Individuals are allowed to exclude 70% of their dividend income from their taxes.
A fatal accident at the production facility of GA Inc., a mobile manufacturer, has killed 58 factory workers. The company is now perceived negatively among customers. In an attempt to revive its reputation, the company has hired Adam Murphy, a popular golfer, as its spokesperson. Murphy is a distinguished personality and is well known for his philanthropic activities. Murphy, being a credible source, can help GA restore its tainted reputation by
A. inhibiting counterarguments about the company and its products. B. attempting to change consumer buying patterns. C. eliminating advertising clutter. D. stimulating consumers to purchase the company's products. E. acting as a positive source derogation.