With regard to dividend payments, which of the following is included in the contractual constraints imposed by loan agreements?
A) limiting the payment to suppliers
B) limiting the percentage of earnings that can be paid out in dividends
C) sustaining a constant dividend payout ratio
D) making fixed payment to equityholders
B
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Walden Industries is considering investing in production-management software that costs $630,000, has $67,000 residual value, and leads to cost savings of $1,650,000 per year over its five-year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return.
A) $697,000 B) $630,000 C) $348,500 D) $67,000
During market testing, Sensation Cosmetics (SC) realized that the cosmetics industry was dominated by multiple, well-established brands. These brands mostly sold their products in exclusive outlets and departmental stores. SC management realized that a new entrant would require a different business model to be successful. Thus, SC started selling its products through direct marketing. In this scenario, Sensation Cosmetics accomplished substitution primarily through
A. strategic equivalence. B. path dependence. C. technology transfer. D. knowledge diffusion.
Which of the following statements concerning value pricing is FALSE?
A. Value pricing means using "budget" or "cheap" prices. B. Value pricing tries to build customer loyalty. C. The focus of value pricing is on the customer's requirements-and the whole strategy. D. Value pricing involves setting a fair price level for a marketing mix that meets customers' needs. E. Companies using value pricing guarantee what they offer.
The typical grace period found in a life insurance policy is 60 days
Indicate whether the statement is true or false