When a firm is evaluating the purchase of a business that is unrelated to its current business, it is appropriate to use the current WACC of the firm that is purchasing the business
Indicate whether this statement is true or false.
Answer: FALSE
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Cash dividends and treasury stock purchases ________.
A) represent cash payments that are made to ensure higher reported profits B) may be limited by creditors to ensure that the company maintains a minimum level of stockholders' equity C) may be restricted as a way to lower federal income tax expense D) make more resources available to pay liabilities
Which of the following is a promotion tool used for trade promotions?
A) sweepstakes B) price packs C) conventions D) rebates E) allowances
When using ACE for bad-news messages, which of the following should be considered during the composing stage of the process?
A) Can I do anything else to project a positive image and maintain goodwill? B) How can I close the message appropriately? C) What is the best medium for this message? D) Have I avoided legal complications? E) Does the message project a good image of me?
If a corporation issues 1,000 shares of $1 par value common stock at $5 per share, how should the transaction be accounted for?
a. debit cash for $5,000 and credit common stock for $5,000 b. debit cash for $5,000 and credit common stock for $1,000 and credit additional paid-in capital for $4,000 c. debit cash for $5,000 and credit common stock for $1,000 and credit retained earnings for $4,000 d. credit cash for $5,000 and debit common stock for $5,000 e. debit common stock for $1,000 and debit retained earnings for $4,000 and credit cash for $5,000