Which of the following statements is correct?
A. If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase.
B. The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model.
C. Companies may pay too high a price in a large open market repurchase if it takes too long to complete.
D. An investor’s capital gains from selling stock in a repurchase are always taxed at a higher rate than if the distribution were dividends.
E. The tax code encourages companies to pay dividends rather than reinvest earnings.
Answer: C
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Sara agrees to cosign a promissory note for Tom to buy a sport utility vehicle. The note is payable to Uno Bank. Sara is an accommodation
A. drawee. B. indorser. C. maker. D. signatory.
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per monthVariable element per client-visitRevenue - $43.70 Personnel expenses$26,100 $12.10Medical supplies 1,000 6.30Occupancy expenses 6,800 1.60Administrative expenses 3,000 0.20Total expenses$36,900 $20.20?The activity variance for net operating income in July would be closest to:
A. $2,825 U B. $235 U C. $2,825 F D. $235 F
Containerships are built specifically for the purpose of moving:
a. 20 and 30 feet containers b. 30 and 40 feet containers c. 30 and 53 feet containers d. 20 and 40 feet containers
What is the exponentially smoothed forecast for week 2? (Use F1 = 25 and alpha = 0.2.)
A. 21 B. 32 C. 53 D. 24