As per dividend relevance theory, current dividend payments are believed to reduce investor's uncertainty, thereby—all else being equal—placing a lower value on a firm's stock after its payment

Indicate whether the statement is true or false


FALSE

Business

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Merchandise inventory turnover is calculated by dividing cost of goods sold by the average merchandise inventory

a. True b. False Indicate whether the statement is true or false

Business

Gladstone Co. has expected sales of $326,000 for the upcoming month and its monthly break even sales are $300,000. What is the margin of safety as a percent of sales, rounded to the nearest whole percent?

A. 8%. B. 92%. C. 52%. D. 108%. E. 9%.

Business

People with ______ tend to possess the skills and capacity to generate ideas.

A. emotional intelligence B. creative potential C. cognitive dissonance D. practiced creativity

Business

Unlow Inc. must choose between two alternate transactions. Transaction 1 would generate $160,000 cash, all of which would be taxable, while transaction 2 would generate $120,000 cash, none of which would be taxable. Determine the marginal tax rate at which the after-tax cash flows from the two transactions are equal.

A. 20% B. 30% C. 15% D. 25%

Business