The name used to identify a reduction made from the original selling price.

Question 8 options:

a)

Cut Rate

b)

Markdown

c)

Decrease

d)

Markup

Diana sold mutual fund shares she had owned 4 years so that she could use the proceeds to travel across Europe with her son. Diana is in the 35% marginal tax bracket and her capital gains from this sale were $30,000.

You are considering investing in a no-load mutual fund with an annual expense ratio of. 6% and an annual 12b-1 fee of. 75%. You could also invest in a bank CD paying 6.5% per year.

Indicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1.

1. The common stock of Textile Mills pays an annual dividend of $1.65 a share. The company has promised to maintain a constant dividend even though economic times are tough.

Alpha Company purchased, on account, 3,500 pounds of raw materials at $9 per pound on January 2, 2017. The production manager requisitioned and received 2,500 pounds of raw material into production on January 15.

It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest to identify. B) only when the stand-alone principle fails to hold.

You have just won a lottery! You will receive $50,000 a year beginning one year from now for 20 years. If your required rate of return is 10%, what is the present value of your winning lottery ticket

You want to invest in a project in Canada. The project has an initial cost of C$828,000 and is expected to produce cash inflows of C$355,000 a year for three years. The project will be worthless after the first three years.

When comparing the three broad types of economic systems, it can be said that for a pure market economy to function efficiently, product supply must be restricted.

Agency problems are most associated with: Multiple Choice 1. limited liability companies. 2. limited partnerships. 3. corporations. 4. sole proprietorships. 5. general partnerships.