The par value of stock is an arbitrary amount assigned to each share of stock

Indicate whether the statement is true or false


True

Business

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An investment's possible payoffs are ?10 percent, 10 percent, and 30 percent. The probabilities that these payoffs will occur are 0.30, 0.40, and 0.30, respectively. What is the expected rate of return on the investment?

A. 10.0% B. 9.5% C. 15.0% D. 12.5% E. 13.0%

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A grocery chain is interested in exploring the impact effective supply chain management would have

Suppose that for every $1 of sales, 4% is profit, 50% is spent in the supply chain, and the remaining 46% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (27% profit margin combined now).

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