The par value of common stock must always be equal to its market value on the date the stock is issued
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
According to the Fisher hypothesis, if the real interest rate is 5 percent and the inflation rate rises from 2 percent to 4 percent, then the nominal interest rate will ____ percentage points and the real interest rate will change by ____ percentage points.
A. rise by 0; ?2 B. fall by 2; ?2 C. rise by 2; 0 D. fall by 1; 1
Negotiation requires both customer and the salesperson:
A) to be persistent in their point of view. B) to be subjected to arm-twisting. C) to agree to disagree. D) come away as winners. E) come away as losers.
Which of the following statements is CORRECT?
A. One defect of the IRR method is that it does not take account of the time value of money. B. One defect of the IRR method is that it does not take account of the cost of capital. C. One defect of the IRR method is that it values a dollar received today the same as a dollar that will not be received until sometime in the future. D. One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid. E. One defect of the IRR method is that it does not take account of cash flows over a project's full life.
When a product or service is new to the market, its pricing should reflect prices of indirect
competitors, not direct competitors. Indicate whether the statement is true or false