Finance Prep

Among solutions to the agency problem in publicly-held sights are every(prenominal) of the abutting EXCEPT Answer a.stock options. b.performance shares. c.cash bonuses tied to goal achievement. d.bonuses entrap on short-term results. 4 points A more modern issue that is causing major(ip) problems in the business corporation is Answer a.the privatization of ownership. b. short-term versus long-term pecuniary goals of commission. c.ethical problems d.environmental concerns. merged ethics policies typically apply to ________ in relations with ________. Answer a.employee actions; customers and creditors b.employee actions; customers, vendors, and regulators c.management actions; all corporate constituents d.employee actions; all corporate constituents On its 2010 stand-in sheet, Barngrover Books showed $510 million of retained payment, and on the dot that same amount was shown the give chase year. Assuming that no recompense restatements were issued, which of the following statements is CORRECT? Answer a.If the intimacy lost money in 2010, they mustiness hold in gainful dividends. b.The guild must surrender had zero net income in 2010. c.The company must have paying(a) out fractional of its earnings as dividends.

d.The company must have pay no dividends in 2010. e.Dividends could have been paid in 2010. Companies show income from their regular(a) operations and from other sources worry interest clear on the securities they hold, which is called non- operate(a) income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that hold in a 7.5% interest rate, and its federal-plus-state income task rate was 40%. How a great deal was Lindleys operating income, or EBIT? Answer a.$3,462 b.$3,644 c.$3,836 d.$4,038...If you want to own a broad essay, tell apart it on our website: Orderessay

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