One potential advantage of financing corporations through the use of bonds rather than common stock is
a. the interest on bonds must be paid when due
b. the corporation must pay the bonds at maturity
c. the interest expense is deductible for tax purposes by the corporation
d. a higher earnings per share is guaranteed for existing common shareholders
c
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The cost of land should not include accrued property taxes paid by the purchaser
Indicate whether the statement is true or false
A business is considering a cash outlay of $250,000 for the purchase of land, which it could lease for $36,000 per year. If alternative investments are available which yield an 18% return, the opportunity cost of the purchase of the land is:
A) $45,000 B) $36,000 C) $ 9,000 D) $54,000
The ________ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime.
A. customer equity B. customer prioritization C. customer lifetime value D. customer segmentation E. share of a customer
A seller or lessor can disclaim all oral express warranties by including in the contract a written disclaimer
Indicate whether the statement is true or false