A bank can reduce the impact of a default risk by
A. having assets with the same time to maturity.
B. making risky loans at low interest rates.
C. making safe loans at high interest rates.
D. diversifying its portfolio.
Answer: D
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Which of the following is true regarding discontinued operations?
a. If a loss is expected on disposal, the estimated loss is recognized in the financial statements as of the measurement date. b. If a loss is expected on disposal, the estimated loss is recognized in the financial statements as of the disposal date. c. If a loss is expected on disposal, recognition is deferred until realization. d. If a gain is expected on disposal, the estimated gain is recognized in the financial statements as of the measurement date.
Suppose you are the president of a small, publicly-traded corporation. Since you believe that your firm's stock price is temporarily depressed, all additional capital funds required during the current year will be raised using debt. In this case, the appropriate marginal cost of capital for use in capital budgeting during the current year is the after-tax cost of debt.
Answer the following statement true (T) or false (F)
Cash and Accounts Receivable are both a part of:
A) Assets. B) Retained Earnings. C) Liabilities. D) Common Stock.
Describe how organizations create and communicate their organizational structure
What will be an ideal response?