A class of stock that can usually be issued at any price without creating a minimum legal capital deficiency is called:
A. Noncumulative stock.
B. Discounted stock.
C. Callable stock.
D. No-par stock.
E. Convertible stock.
Answer: D
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Importance-performance analysis rates the various elements of the service bundle and identifies required actions
Indicate whether the statement is true or false
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What will be an ideal response?
Lopez Co is interested in purchasing equipment that would improve its operational efficiency. The cost of the equipment is $400,000 with an estimated residual value of $30,000 and a useful life of ten years. The equipment is expected to generate cash inflows of $60,000 a year. The company's minimum rate of return is 8 percent. The present value of $1 for ten years at 8 percent is 0.463, and the
present value of an annuity of $1 at 8 percent and ten years is 6.710. Using the above information for Lopez, the net present value of the project is A) $402,600. B) $13,890. C) $200,000. D) $16,490.