Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem1. Which of the following statements is acceptable?

a. Preferred dividends are not basically cumulative.        

b. The preferred stock of a given firm is basically less risky to investors than the same firm's common stock.       

c. Preferred stockholders have a priority over bondholders in event of bankruptcy to income, however not to the proceeds in the liquidation.

d. A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation.                

e. Corporations can’t buy the preferred stocks of other corporations.

 

problem2. Which of the following statements best describes what you must anticipate if you randomly select stocks and add them to your portfolio?

a. Adding more such stocks will lessen the portfolio's unsystematic, or diversifiable, risk.              

b. Adding more such stocks will lessen the portfolio's beta coefficient and thus its systematic risk.

c. Adding more such stocks will raise the portfolio's expected rate of return.      

d. Adding more such stocks will have no consequence on the portfolio's risk.     

e. Adding more such stocks will lessen the portfolio's market risk but not its unsystematic risk.

 

problem3. Which of the following statements is acceptable?

a. Typically, a firm's EBIT must exceed its EBITDA.             

b. If a firm is more profitable than average (e.g., Google), we would normally anticipate to see its stock price exceed its book value per share.   

c. If a firm is more profitable than most other firms, we would normally anticipate seeing its book value per share exceed its stock price, especially after various years of high inflation.     

d. The more depreciation a firm has in a given year, the higher its EPS, other things held stable.

e. Typically, a firm's DPS must exceed its EPS.

 

problem4. Other things held stable, the value of an option depends on the stock's price, the risk-free rate, and the

a. Variability of stock price.         

b. Option's time to maturity.      

c. Strike price.   

d. All of these.  

e. None of these.

 

problem5. Other things held stable, which of the following actions would raise the amount of cash on a company's balance sheet?

a. The company gives customers more time to pay their bills.     

b. The company repurchases common stock.     

c. The company issues new common stock.        

d. The company buys a new piece of equipment.            

e. The company pays a dividend.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93786

Have any Question? 


Related Questions in Financial Accounting

Please construct a cost volume profit break-even chart

Please construct a cost volume profit (break-even) chart based on the following information: Unit selling price = $80.00 Unit variable cost =$30.00 Total fixed cost = $150,000.00 Relevant range of production is 0 to 10,0 ...

Assignment chapter 2 mini case financial statement and cash

Assignment: Chapter 2 Mini Case: "Financial Statement and Cash Flow Analysis" You are to write a six to ten page report that responds to the following: Part A: Use the financial statements in the text to determine the fo ...

In chapter 8 how does a company gather information about

In Chapter 8 "How Does a Company Gather Information about Its Inventory?", you prepared Webworks statements for August. They are included here as a starting point for September. Here are Webworks financial statements as ...

Muntjac corporations flexible budget cost formula for

Muntjac Corporation's flexible budget cost formula for indirect materials, a variable cost, is $1.25 per unit of output. Assume that actual units produced equals standard units produced. If the company's performance repo ...

The measure that reflects an organizationrsquos variable

The measure that reflects an organization’s variable and fixed cost relationship and indicates how a percentage change in sale from the current level will impact from the current level will impact profits is called the a ...

An investment fund has a balance of 100 at the beginning of

An investment fund has a balance of 100 at the beginning of the year and of 145 at the end of the year. A 30 contribution to the fund is made at time t=1/3. The balance just prior to this contribution is 105. Let the ann ...

On january 1 2016 cobbler corporation awarded restricted

On January 1, 2016, Cobbler Corporation awarded restricted stock units (RSUs) representing 30 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. Af ...

One of the potential problems in analyzing foreign

One of the potential Problems in Analyzing Foreign Financial Statements is International Ratio Analysis: Differences in culture and economic environments have an impact on the relevance of ratios A study of companies in ...

On febraury 1 2015 hils company had 10000 pounds of

On Febraury 1, 2015, Hils Company had $ 10,000 pounds of inventory costin g$ 1.50 per pound; the market value per pound was $ 1.95 on this date. Hills enterd into a futures contract to sell the 10,000 pounds of inventory ...

A analyze the effects of each of the following transactions

a.) Analyze the effects of each of the following transactions on each of the funds and/or the nonfund accounts of the city of Nancy. Identify the fund that typically would be used to record the transaction. b.) Indicate ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate