One disadvantage of the payback period is that
A) it is sometimes used as a crude measure of risk.
B) managers may choose investments with quick payback periods to maximize short term criteria on which their own bonuses, etc. may be based.
C) it cannot be used for investments with unequal cash inflows.
D) it cannot be used if the entire cost of the investment does not occur immediately.
E) all of these.
B
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Singletary Corporation owns a 40 percent interest in the stock of Fleming Corporation. During 2014, Fleming pays $50,000 in dividends to Singletary and reports $214,000 in net income. Singletary Corporation's investment in Fleming will increase Singletary's income before income taxes by
A) $35,600. B) $65,600. C) $85,600. D) $105,600.
In a consolidated balance sheet, the minority interest is reported
a. as part of long-term liabilities. b. between liabilities and stockholders' equity c. as part of stockholders' equity. d. as part of long-term assets.
A Converging Radial, Segmented Pyramid, and Target List are examples of ____________________
Fill in the blank(s) with correct word
A corporation cannot be charged with a crime since it is not a person
a. True b. False Indicate whether the statement is true or false