The term _____ describes financing with debt and preferred stock to increase the potential return to the residual common shareholders' equity
a. trading on the debt
b. trading on the equity
c. financial leverage
d. equity financing
e. none of the above
C
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Chavez Company is considering purchasing new equipment or overhauling its existing equipment. The manager has gathered the following information:
Required:1) Identify the sunk costs associated with this decision.2) Compute the increase or decrease in total income over the five-year period if the company chooses to buy the new equipment.3) Compute the increase or decrease in total income over the five-year period if the company chooses to overhaul its existing machinery.4) What is your recommendation for this decision?
What will be an ideal response?
Which of the following is TRUE for customer-perceived value?
A) It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. B) It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. C) It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. D) It is the net present value of the stream of future profits expected over the customer's lifetime purchases. E) It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies.
Charlene handles finance and accounts at a technology start-up. She falsifies certain records so that the company's assets will appear greater and thereby improve its chances of obtaining a loan. What crime has Charlene committed?
A) larceny B) false entries C) false tokens D) forgery
A company's product development strategy
A) defines the set of customer needs that it seeks to satisfy through its products and services. B) specifies the portfolio of new products that it will try to develop. C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted. D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.