A material weakness caused by ineffective oversight of the external financial reporting function by the audit committee will ordinarily result in communication to: PCAOBThe Stock Exchange That the Company is Listed OnA.YesYesB.YesNoC.NoYesD.NoNo
A. Option A
B. Option B
C. Option C
D. Option D
Answer: D
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Which of the following Federal Reserve Banks performs the role of buying or selling currencies in the foreign exchange market?
A. The Federal Reserve Bank of Minneapolis B. The Federal Reserve Bank of Boston C. The Federal Reserve Bank of New York D. The Federal Reserve Bank of San Francisco
The reason for a company’s existence is called its ______.
a. vision b. mission c. center d. inspiration
An understatement of ending inventory in one period results in
A) an overstatement of the ending inventory of the next period. B) an understatement of gross margin of the next period. C) an overstatement of gross margin of the next period. D) no effect on gross margin of the next period.
Pensacola Soda Inc is all equity financed and generates perpetual annual EBIT of $300. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year
Assume that Pensacola has a 100% payout rate, 1,500 shares outstanding, and that shareholders require a return of 5%. Assume that the tax rate is 0%. Pensacola is considering an open market stock repurchase. It plans to buy 20% of its outstanding shares at the price of $4.00 per share. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds worth a total sum of $1,200 and a coupon rate (and yield) of 3%. Assume that the tax rate is 0%. If Pensacola goes ahead with the repurchase, then what is its WACC after the repurchase is complete? A) 3.0% B) 3.5% C) 4.5% D) 5.0% E) 5.5%