Which one of the following statements about common stock is true?

A) Common stock can provide attractive capital appreciation opportunities.
B) Dividends generally provide the greatest rate of return on common stocks.
C) Common stocks generally have a negative rate of return over a ten-year period.
D) The DJIA is the best indicator of the overall performance of common stocks.


Answer: A

Business

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With reference to global marketing, identify the example that best explains the term "consumer convergence."

A) Population growth rates have stabilized and the population over age 65 is increasing. B) The increasing numbers of women working outside the home has led to more nontraditional meals and increased need for convenience. C) Aging populations, falling birth rates, and increased female employment are common in industrialized countries. D) Upscale consumers in Paris have more in common with their counterparts in New York than with many other French people.

Business

Net income plus interest expense divided by average total assets is the formula for which of these analytical measures?

a. price-earnings ratio b. inventory turnover c. rate earned on total assets d. number of days' sales in inventory

Business

List and describe three strategies for investing in bonds

What will be an ideal response?

Business

Thornbrough Corporation produces and sells a single product with the following characteristics: Per UnitPercent of SalesSelling price$220  100%Variable expenses 44  20%Contribution margin$176  80%The company is currently selling 7,000 units per month. Fixed expenses are $901,000 per month.The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $53,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,000 units. What should be the overall effect on the company's monthly net operating income of this change?

A. decrease of $105,000 B. increase of $105,000 C. increase of $149,000 D. decrease of $21,000

Business