For Melinda's will to be valid, she must be mentally competent at the time of
a. death.
b. the acquisition of the property to be distributed under the will.
c. the making of the will.
d. the probate of the will.
C
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When royalties are paid, the amount paid is reported to the recipient by the payer on a Form 1099-MISC.
Answer the following statement true (T) or false (F)
Which of the following statements about the impact of treasury stock on the amounts reported on the balance sheet is correct?
A. The balance in the treasury stock reduces retained earnings. B. The balance in the treasury stock account increases paid-in capital. C. The balance in the treasury stock account reduces paid-in capital. D. The balance in the treasury stock account reduces total stockholders' equity.
A manager of a fiberglass molding operation suspects that the number of process failures is related to the number of total units produced of a particular product. A tool most useful in this analysis would be a:
A) checklist. B) cause-and-effect diagram. C) Pareto chart. D) scatter diagram.
Stock A has a beta of 0.8, Stock B has a beta of 1.0, and Stock C has a beta of 1.2. Portfolio P has equal amounts invested in each of the three stocks. Each of the stocks has a standard deviation of 25%. The returns on the three stocks are independent of one another (i.e., the correlation coefficients all equal zero). Assume that there is an increase in the market risk premium, but the risk-free rate remains unchanged. Which of the following statements is CORRECT?
A. The required return of all stocks will remain unchanged since there was no change in their betas. B. The required return on Stock A will increase by less than the increase in the market risk premium, while the required return on Stock C will increase by more than the increase in the market risk premium. C. The required return on the average stock will remain unchanged, but the returns of riskier stocks (such as Stock C) will increase while the returns of safer stocks (such as Stock A) will decrease. D. The required returns on all three stocks will increase by the amount of the increase in the market risk premium. E. The required return on the average stock will remain unchanged, but the returns on riskier stocks (such as Stock C) will decrease while the returns on safer stocks (such as Stock A) will increase.