Operating leverage is measured as the responsiveness of the firm's earnings before interest and
taxes relative to fluctuations in sales.
Indicate whether the statement is true or false
TRUE
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A bill is received for electric service; the charge for the electricity is recorded, but payment will be made later. For this transaction, identify the effect on the accounting equation
a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Liabilities increase and stockholders' equity decreases. d. Liabilities decrease and assets decrease.
Job satisfaction has a ________ correlation with affective commitment.
A. moderate weak B. weak negative C. strong positive D. moderate E. weak positive
According to the GLOBE Study,
a. cultures do differ in their expectations about how much power distance there should be between leaders and subordinates b. it is a stereotype that cultures differ in power distance between leaders and followers—no such differences exist c. no conclusions can be drawn about cross-cultural differences in power distance d. Anglo cultures like the United Kingdom and the United States are the highest on power distance
The beta coefficient of Zed Corporation is equal to 0.7 and the required rate of return on the stock equals 12 percent. If the expected return on the market is 12.5 percent, what is the risk-free rate of return?
A. 11.56% B. 10.83% C. 9.52% D. 12.25% E. 8.89%