A superstore is a storeless retailer serving a specific clientele who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership
Indicate whether the statement is true or false
FALSE
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If we determine a precise linear relationship between two variables, then by knowing the value of one variable, we should be able to predict the other variable
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Proprietorships are owned by one owner and provide only services to their customers
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A corporation plans to invest $1 million in oil exploration. The corporation is considering two plans to raise the money. Under Plan #1, bonds with a contract rate of interest of 6% would be issued. Under Plan #2, 50,000 additional shares of common stock would be issued at $20 per share. The corporation currently has 300,000 shares of stock outstanding, and it expects to earn $700,000 per year before bond interest and income taxes. The net income and return on investment for both plans is shown below:?Plan #1 Plan #2Earnings before bond interest and taxes$ 700,000 $ 700,000Bond interest expense(60,000)?Income before taxes.$ 640,000 $ 700,000 Income taxes(224,000)(245,000)Net income$ 416,000 $ 455,000 ???Equity$8,000,000 $9,000,000 Return on
Equity5.2%5.06%Comment on the relative effects of each alternative, including when one form of financing is preferred to another. What will be an ideal response?
In the United States, banks are regulated by the Financial Services Authority (FSA)
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