Which of the following plays an important role in determining the capital structure of a firm??
A. ?Managerial attitudes
B. ?Reserve borrowing capacity
C. ?Shareholders' expectations
D. ?Asymmetric information
E. ?Bankruptcy-related costs
Answer: A
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During the most recent year, Grace paid $109,000 in interest to its lenders and $78,000 in dividends to its stockholders. REQUIRED: 1 . In which category of the statement of cash flows (operating, investing, or financing) should each of these amounts be
shown if Grace follows U.S. GAAP? If more than one category is acceptable, indicate what the choices are. 2 . In which category of the statement of cash flows (operating, investing, or financing) should each of these amounts be shown if Grace follows IFRS? If more than one category is acceptable, indicate what the choices are.
Discount on Notes Payable is treated as a reduction of notes payable on the balance sheet
a. True b. False Indicate whether the statement is true or false
When treasury stock is reissued and the cost is less than the reissue price, the difference increases additional paid- in capital
a. True b. False Indicate whether the statement is true or false
Cultural sensitivity ________
A) applies only to international communication B) deals exclusively with people who are non-native English speakers C) does not refer to cultural differences among people of different ages D) may apply to cultural differences between people of different genders E) is impossible to achieve given the diversity in the world today