Whit is a director of Vids Corporation. With respect to policymaking decisions necessary to the management of corporate affairs, Whit and the other Vids directors have responsibility for
A. all of the decisions.
B. only the decisions referred to them by the shareholders.
C. only the decisions referred to them by the officers.
D. none of the decisions.
Answer: A
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Devaluation refers to ______.
a. reduction in the value of a currency b. drop in market value for a company c. reduction in the price of a product d. loss of market share for a product
A spouse who is named the beneficiary of a life insurance policy would ordinarily be:
a. a creditor beneficiary. b. an incidental beneficiary. c. a donee beneficiary. d. a debtor beneficiary.
Assuming a PITI of approximately $1,300 for the townhouse, will they be approved for a mortgage?
Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. A) No, based on the amount of their existing debt they will not be approved. B) No, based on the 28 percent rule they will not be approved. C) Yes, based on the 36 percent rule they will be approved. D) Yes, based solely on their combined income they will be approved.
Reye Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$200,000 Expected life of the project 4 Salvage value of equipment$0 Annual sales$430,000 Annual cash operating expenses$320,000 Working capital requirement$20,000 The company's income tax rate is 30% and its after-tax discount rate is 9%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The income tax expense in year 2 is:
A. $15,000 B. $96,000 C. $129,000 D. $18,000