What do shareholders most desire when a firm retains earnings rather than paying dividends?
Ans: A higher return than the shareholder can earn elsewhere given the same level of risk
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Mapleton Company is considering an investment in a machine that would reduce annual labor costs by $30,000 . The machine has an expected life of 10 years with no salvage value. The machine would be depreciated according to the straight-line method over its useful life. The company's marginal tax rate is 30 percent. Refer to Mapleton Company. Assume that the company will invest in the machine if
it generates an internal rate of return of 16 percent. What is the maximum amount the company can pay for the machine and still meet the internal rate of return criterion? Present value tables or a financial calculator are required. a. $144,990 b. $180,000 c. $187,500 d. $210,000
Answer the following statements true (T) or false (F)
Because post-earnings-announcement drift shows that there is at least some amount of efficiency in the market, it is even more important to attempt to improve the quality of accounting standards.
Keeping an electronic calendar
a. can replace your To-Do list. b. can prevent the spread of a virus. c. offers many time-saving options. d. none of these choices.
Alice and Mary are the two parties in a dispute. They have recently gone through the process of mediation, but Alice is unhappy with the results and wants to go through arbitration. Which of the following statements is true of this scenario?
A) The parties decide whether to allow what transpired during mediation to be permitted as evidence in arbitration. B) The mediator of this dispute must become the arbitrator as well. C) Mary can select the arbitrator if Alice wants to go through arbitration. D) The arbitrator can provide a decision that is binding on both Alice and Mary.