You have the most popular house on the block for the neighborhood children to play at. You have a trampoline, tree fort and jungle gym. Your family also has two large German shepherd dogs. What should you consider given the described situation?
A) Purchasing personal property replacement cost coverage
B) Purchasing earthquake coverage
C) Purchasing an umbrella policy
D) None of the above
Answer: C
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Which of the following statements is not true?
a. A review of financial statements, including the notes, will indicate how conservative the statements are in regard to accounting policies. b. Accounting policies that result in the slowest reporting of income are the most conservative. c. When a firm has conservative accounting policies, it is said that its earnings are of high quality. d. Under inflationary conditions, the least conservative inventory method is fifo. e. Conservative accounting policies always result in the lowest reported income for any given period of time.
A(n) ______ is a business that is independently owned and operated, with a small number of employees and a relatively low volume of sales.
a. entrepreneurial venture b. independent operation c. franchise d. small business
Average age of inventory can be calculated as 365 divided by inventory turnover
Indicate whether the statement is true or false
You work for the CEO of a new company that plans to manufacture and sell a new type of laptop computer. The issue now is how to finance the company, with only equity or with a mix of debt and equity. Expected operating income is $690,000. Other data for the firm are shown below. How much higher or lower will the firm's expected EPS be if it uses some debt rather than only equity, i.e., what is EPSL - EPSU? 0% Debt, U 60% Debt, LOper. income (EBIT)$690,000 $690,000Required investment$2,500,000 $2,500,000% Debt0.0% 60.0%$ of Debt$0.00 $1,500,000$ of Common equity$2,500,000 $1,000,000Shares issued, $10/share250,000 100,000Interest rateNA 10.00%Tax rate35% 35%?
A. $1.29 B. $1.97 C. $2.23 D. $1.72 E. $1.63