Borrowing money from the bank is an example of an asset source transaction.
Answer the following statement true (T) or false (F)
True
This is true. Borrowing money from the bank is an example of an asset source transaction because the asset cash increases as well as the liability notes payable.
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Cash paid to acquire treasury stock should be shown on the statement of cash flows from investing activities
Indicate whether the statement is true or false
A worker at a grocery store directing customers to lines based on the amount of groceries they are purchasing is an example of?
a. Complementary services b. Reservations c. Demand sorting d. Pricing policies/promotions
Farmer Elvin is holding 200 pounds of potatoes in storage for Chef Noble but Chef Noble has breached the contract by failing to pay for the potatoes. The potatoes are beginning to rot. If Farmer Elvin sells the potatoes to a local diner to make potato soup and salad, then this action would be considered:
a. a reasonable mitigation of damages. b. an attempt to maximize damages. c. an attempt to realize an unwarranted profit. d. conversion.
You have been hired by a new firm that is just being started. The CFO wants to finance with 60% debt, but the president thinks it would be better to hold the percentage of debt in the capital structure (wd) to only 10%. Other things held constant, and based on the data below, if the firm uses more debt, by how much would the ROE change, i.e., what is ROEHigher - ROELower? Do not round your intermediate calculations. Operating Data Other Data Capital$4,000 Higher wd60%ROIC = EBIT(1 - T)/Capital17.00% Higher interest rate13%Tax rate35% Lower wd10% Lower interest rate9%?
A. 10.31% B. 11.59% C. 10.43% D. 9.15% E. 10.54%