Because competitors in oligopolistic industries are so interdependent, it is especially important for managers in those firms to monitor and respond to changes their competitors make.
Answer the following statement true (T) or false (F)
True
A key feature of an oligopoly is that the competing firms are interdependent. With only a few competitors in the mix, the actions of one firm influence the behaviors of the others. Each competitor in an oligopoly, therefore, must consider the strategic actions of the other competitors.
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A. pay attention B. improve concentration C. boost your energy D. all of the above
A dividend reinvestment plan enables stockholders to ________
A) reinvest the dividends in money market instruments which are risk free B) reinvest all dividends in the firm with no accompanying increase in equity C) acquire additional dividends through redemption of stock D) acquire shares at little or no transaction costs
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Paper Corporation holds 80 percent of the voting shares of Scissor Company. On January 1, 20X8, Scissor purchased $100,000 par value 12 percent Paper bonds from Cruse Corporation for $115,000. Paper originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8-year maturity from the date of issue and pay interest semiannually on June 30 and December 31 each year. Scissor' reported net income of $65,000 for 20X8, and Paper reported income (excluding income from ownership of Scissor's stock) of $90,000. Paper's partial bond amortization schedule is as follows:PMT# Interest$ PMTInterestExpense Amort ofDiscount(Premium)Premium(Discount)BondsPayableBV
ofBonds 1/1/20X6 10,000.00 100,000.00 110,000.00 1 6/30/20X6 6,000.00 5,579.78 (420.22) 9,579.78 100,000.00 109,579.78 2 12/31/20X6 6,000.00 5,558.47 (441.53) 9,138.25 100,000.00 109,138.25 3 6/30/20X7 6,000.00 5,536.07 (463.93) 8,674.33 100,000.00 108,674.33 4 12/31/20X7 6,000.00 5,512.54 (487.46) 8,186.86 100,000.00 108,186.86 5 6/30/20X8 6,000.00 5,487.81 (512.19) 7,674.68 100,000.00 107,674.68 6 12/31/20X8 6,000.00 5,461.83 (538.17) 7,136.51 100,000.00 107,136.51 Based on the information given above, what gain or loss on the retirement of bonds should be reported in the 20X8 consolidated income statement? A. $6,326 loss B. $6,326 gain C. $6,813 gain D. $6,813 loss