The internal rate of return is the rate at which a project's net present value is zero
Indicate whether the statement is true or false
T
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Denny's Deli, Inc The stockholders' equity section of the December 31, 2011, balance sheet for Denny's Deli appeared as follows: Common stock, $20 par, 40,000 shares issued and outstanding $ 800,000 Additional paid-in capital 320,000 Retained earnings 600,000 Total stockholders' equity $ 1,720,000 Assume that all of the 40,000 shares of Denny's stock that was issued as of December 31, 2011, was
issued for $35 per share. On March 1, 2012, Denny reacquired 5,000 shares of its common stock for $43 per share. Refer to the information presented above for Denny's Deli, Inc Suppose that Denny reissued 1,500 shares of its treasury stock on June 1, 2012, for $50 each. Which of the following is true regarding the entry required to record this transaction? A) A debit to treasury stock is required for $75,000. B) A credit to treasury stock is required for $64,500. C) A credit to retained earnings is required for $10,500. D) A debit to additional paid-in capital from treasury stock transactions is required for $10,500.
Drug Company X reports the introduction of a new pill that is guaranteed to cause weight loss with no side effects. The information was advertised in connection with a public offering of stock of the company's stock. Later, it becomes apparent through additional testing that unfortunately the new pill also results in premature hair loss, a material issue. Monika is the president of Company X and
is very pleased with sales of the drug. She recognizes that she can no longer advertise the drug as having no side effects, but she does not believe she has made any misrepresentations because she was not aware of the hair loss side effect when previous statements were made. She decides to do nothing. Has she made the correct decision as far as Rule 10b-5 is concerned? a. Yes, because she has no duty to disclose later test results. b. Yes, because she has no duty to disclose later test results that involve only cosmetic issues. c. Yes, because she has no duty to disclose later test results that involve issues that are not life threatening. d. No, she made the wrong decision because she has an obligation to disclose the results.
For governments, an example of an intangible EC metric is
A) reelection of candidates. B) lower tax rates. C) increase in participation in government programs. D) risk reduction.
Flagg records adjusting entries at its December 31 year-end. At December 31, employees had earned $8000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $20,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.
A. Debit Salaries expense $12,000; debit Salaries payable $8000; credit Cash $20,000. B. Debit Salaries expense $8000; credit Salaries payable $8000. C. Debit Salaries expense $12,000; credit Salaries payable $12,000. D. Debit Salaries payable $12,000; credit Cash $12,000. E. Debit Salaries payable $8000, credit Salaries expense $8000.