Which of the following is not true about a stock dividend?
a. With a stock dividend, the firm issues a percentage of outstanding stock as new shares to existing shareholders.
b. The overall effect of a stock dividend is to leave total stockholders' equity and each owner's share of stockholders' equity unchanged.
c. In theory, with a stock dividend, total market value considering all outstanding shares should not change.
d. Since the number of shares changes under a stock dividend, any ratio based on the number of shares must be restated.
e. The accounting for a stock dividend, assuming the distribution is relatively small, requires that the par value of the stock be removed from retained earnings.
E
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Which of the following is the most important reason for defining decision variables as part of linear programming (LP) formulation?
a. The decision variables will set the stage for the rest of the formulation steps. b. The value of the decision variables will determine how many units will be produced at any given time. c. The value of the decision variables will determine how many constraints are needed in the LP model. d. The decision variables also determine how many goals the decision maker must achieve.
Firms generally choose to finance temporary current assets with short-term debt because
A. matching the maturities of assets and liabilities reduces risk under some circumstances, and also because short-term debt is often less expensive than long-term capital. B. short-term interest rates have traditionally been more stable than long-term interest rates. C. a firm that borrows heavily on a long-term basis is more apt to be unable to repay the debt than a firm that borrows short term. D. the yield curve is normally downward sloping. E. short-term debt has a higher cost than equity capital.
Systems monitoring and helping behaviors are examples of ________ processes.
A. organizational B. cohesive C. groupthink D. managerial E. action
As an insurance agent, you are asked by Oceana Industries for a quote on the total annual premium for property insurance on a new warehouse in the amount of $975,000. The building is structural classification C and area rating 3. In addition, Oceana will require contents insurance in the amount of $2,100,000. What is the amount of your quote? (Use Table 19-4 from your text)