Shareholders' equity is a residual interest. It represents the shareholders' claim on the assets of a firm after the firm satisfies all higher-priority claims
Indicate whether the statement is true or false
T
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Answer the following statements true (T) or false (F)
1. A domestic business conducts business in more than one country. 2. A multinational corporation can have partial or full ownership of operations in another country. 3. In order to be a subsidiary of a company, the subsidiary must be located in a different country than the controlling company. 4. Protectionism refers to trade barriers to protect domestic companies and their workers from foreign competition.
If a will client is discussing her family with the paralegal, and she mentions that she only has two children and three grandchildren whom she would like to take under her will, that client wishes to leave her estate to her:
A) lineal descendants. B) lineal ascendants. C) collateral relatives. D) trustee and administrator.
The Security Market Line (SML) relates risk of individual securities to their required rate of return. If investors conclude that the inflation rate is going to increase, which of the following change would occur?
A. ?The market risk premium would increase. B. ?The beta of the stock would increase. C. ?The slope of the SML would become steeper. D. ?The standard deviation of the stock would increase. E. ?The required return of an average stock would increase.
The level of risk associated with the equally likely criterion lies somewhere between the risks associated with the maximax and maximin approaches
Indicate whether the statement is true or false