A company's hurdle rate is generally influenced by:
A. the firm's depreciable assets.
B. both the cost of capital and project risk.
C. whether management uses the net-present-value method or the internal-rate-of-return method.
D. the cost of capital.
E. project risk.
Answer: B
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Jay's Limo Services paid cash dividends of $100. Which of the following general journal entries will Jay's Limo Services make to record this transaction?
A.
| Common Stock | 100 | |
| Dividends | 100 |
B.
| Dividends | 100 | |
| Cash | 100 |
C.
| Cash | 100 | |
| Dividends | 100 |
D.
| Cash | 100 | |
| Common Stock | 100 |
E.
| Dividends | 100 | |
| Retained Earnings | 100 |
The four targeted elements of change are organizational arrangements, social factors, methods, and people.
Answer the following statement true (T) or false (F)
Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,500,000, calculate the firm's selling price per composite unit.
A. $13,200. B. $7,575. C. $1,950. D. $15,150. E. $1,255.
If bonds are issued at a discount, it means that the
A) bondholder will receive effectively less interest than the contractual rate of interest. B) market interest rate is lower than the contractual interest rate. C) market interest rate is higher than the contractual interest rate. D) financial strength of the issuer is suspect.