A linear regression model results in the equation Y = 15 - 23X. If the coefficient of determination is a perfect 1.0, the correlation coefficient must be -1
Indicate whether the statement is true or false
TRUE
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The following set of items describes activities completed by a company in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. A single employee in the mailroom opens the mail, counts the money received, and prepares a control list of the amount received
a. Adheres to sound internal control procedures b. Violates sound internal control procedures c. Neither strengthens nor violates internal control
In calculating book value per common share:
a. the number of common shares issued is used as the denominator. b. total shareholders' equity plus preferred stock equity is used in the numerator. c. the average number of common shares outstanding is used in the denominator. d. total shareholders' equity minus preferred stock equity is used in the numerator.
Parallel writing A) uses similar structures to express similar words
B) places modifiers close to the words being described. C) uses mechanical techniques such as underlining and bolding to emphasize ideas. D) de-emphasizes ideas by placing the ideas in dependent clauses.
The cost of capital for two mutually exclusive projects that are being considered is 12%. Project K has an IRR of 20% while Project R's IRR is 15%. The projects have the same NPV at the 12% current cost of capital. Interest rates are currently high. However, you believe that money costs and thus your cost of capital will soon decline. You also think that the projects will not be funded until the cost of capital has decreased, and their cash flows will not be affected by the change in economic conditions. Under these conditions, which of the following statements is CORRECT?
A. You should delay a decision until you have more information on the projects, even if this means that a competitor might come in and capture this market. B. You should recommend Project R, because at the new cost of capital it will have the higher NPV. C. You should recommend Project K, because at the new cost of capital it will have the higher NPV. D. You should recommend Project R because it will have both a higher IRR and a higher NPV under the new conditions. E. You should reject both projects because they will both have negative NPVs under the new conditions.