Capital punishment is barred by the U.S. Constitution
Indicate whether the statement is true or false
FALSE
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The term "relevant range" as used in cost accounting means the range over which
a. costs may fluctuate. b. cost relationships are valid. c. production may vary. d. relevant costs are incurred.
The segment margin of a profit or investment center does not include allocated common costs
Indicate whether the statement is true or false
Phishing is
a. another word for archiving. b. claiming the work of others as your own. c. an attempt to lure people into providing confidential information. d. none of these choices.
Frank Castanza owns 100 shares in a weapons company called Guns-R-Us. Frank brags about its steady, annual dividend of $1.25 per share. You are jealous of the dividend but philosophically opposed to weapons companies, so you can't buy the stock
Instead, you have identified the Paper Street Soap Factory (PSSF) which is developing a new biodegradable bath soap. The company plans to begin paying an annual dividend of $1.25 starting in two years. Stockholders in both companies require a return of 7.5%. A stock price and dividend forecast for the two companies is provided in the table. (Assume that dividends are paid in perpetuity.) Your plan is to buy shares in PSSF today, sell some at Year 1 and hold the remainder in perpetuity. How many shares do you have to buy today in order to earn the same annual income as Frank? Guns-R-Us PSSF Year Price Dividend Price Dividend 0 16.66667 15.50388 1 16.66667 1.25 16.66667 0 2 16.66667 1.25 16.66667 1.25 3 16.66667 1.25 16.66667 1.25 A) 93 B) 100 C) 107.5 D) 116.67 E) 125