A contract that requires regular monthly payments over a set period of time for an automobile, after which the car is often returned to the owner is a:
a. purchase agreement
b. U.S. Savings Bond
c. bad deal
d. rental agreement
e. lease
e. lease
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Four underlying problems that called pre-SOX federal security law adequacy into question were addressed in the text. Discuss two of these problems
Given the informality of a business email message, grammar and spelling are not as critical as they might be in a business letter
Indicate whether the statement is true or false
Creative task performance is the degree to which individuals develop ideas or physical outcomes that are both novel and useful.
Answer the following statement true (T) or false (F)
Tangshan Mining Company must choose its optimal capital structure
Currently, the firm has a 40 percent debt ratio and the firm expects to generate a dividend next year of $4.89 per share and dividends are expected to grow at a constant rate of 5 percent for the foreseeable future. Stockholders currently require a 10.89 percent return on their investment. Tangshan Mining is considering changing its capital structure if it would benefit shareholders. The firm estimates that if it increases the debt ratio to 50 percent, it will increase its expected dividend to $5.24 per share. Because of the additional leverage, dividend growth is expected to increase to 6 percent and this growth will be sustained indefinitely. However, because of the added risk, the required return demanded by stockholders will increase to 11.34 percent. (a) What is the value per share for Tangshan Mining under the current capital structure? (b) What is the value per share for Tangshan Mining under the proposed capital structure? (c) Should Tangshan Mining make the capital structure change? Explain.