A firm's capital expenditures may be limited due to externally imposed constraints. All but which of the following are external constraints?
A) The firm's loan agreements may contain restrictive constraints.
B) The firm may decide to place an upper limit on the amount of funds allocated to capital investment.
C) If the firm has a weak financial position, it may be too expensive to float a new bond issue.
D) There may be market-imposed difficulties such as a tight money policy on the part of the Federal Reserve System.
B
You might also like to view...
Which of the following is a way to interpret factors?
A) based on the variables that load high on a factor B) by plotting the variables using the factor loadings as coordinates C) both A and B D) none of the above
Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers
Indicate whether the statement is true or false
After-tax cash flow from a passthrough entity will always exceed after-tax cash flow from a taxable corporation.
Answer the following statement true (T) or false (F)
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $8,288. FICA tax for Social Security is 6.2% on the first $118,500 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings. The FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,375.17. What is the amount of the employer's payroll taxes expenses for this employee? (Round your intermediate calculations to two decimal places.)
A) $2,009.21 B) $1,131.31 C) $2,506.48 D) $420.00 E) $1,054.04