Suppose Finance Inc., pays an annual dividend of $8.50 and the investors required a rate of return of 4%. What is the value of Finance Inc's preferred shares? O a. $81.73 O b. $0.34 ○ c. $0.0005 O d. $100 O e. $212.50 Under the MACRS system, an asset with a depreciable life of 5 years will be fully depreciated in: ○ a. 6 years due to the use of double declining method O b. 5.5 years due to the use of written down value method O c. No option is correct ○ d. 3.5 years due to the half-year convention O e. 5 years A communication network of dealers who are trading shares for themselves and their clients is known as; a. organised market O b. cyber market ○ c. an over-the-counter market ○ d. telephonic market O e. All options are correct When a company uses more cash in a year than it sources for itself; O a. it is always an indication that the cash balance in the balance sheet will reduce in the coming year. O b. it is always an indication of eroding shareholder wealth ○ c. it is always an indication of it becoming less profitable O d. it is always an indication that the company has paid off a liability O e. it is always an indication that the company has acquired an asset
Suppose Finance Inc., pays an annual dividend of $8.50 and the investors required a rate of return of 4%. What is the value of Finance Inc's preferred shares? O a. $81.73 O b. $0.34 ○ c. $0.0005 O d. $100 O e. $212.50 Under the MACRS system, an asset with a depreciable life of 5 years will be fully depreciated in: ○ a. 6 years due to the use of double declining method O b. 5.5 years due to the use of written down value method O c. No option is correct ○ d. 3.5 years due to the half-year convention O e. 5 years A communication network of dealers who are trading shares for themselves and their clients is known as; a. organised market O b. cyber market ○ c. an over-the-counter market ○ d. telephonic market O e. All options are correct When a company uses more cash in a year than it sources for itself; O a. it is always an indication that the cash balance in the balance sheet will reduce in the coming year. O b. it is always an indication of eroding shareholder wealth ○ c. it is always an indication of it becoming less profitable O d. it is always an indication that the company has paid off a liability O e. it is always an indication that the company has acquired an asset
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 1TP: Assume you are the controller of a large corporation, and the chief executive officer (CEO) has...
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Transcribed Image Text:Suppose Finance Inc., pays an annual dividend of $8.50 and the investors required a rate of
return of 4%. What is the value of Finance Inc's preferred shares?
O a. $81.73
O b. $0.34
○ c. $0.0005
O d. $100
O e. $212.50
Under the MACRS system, an asset with a depreciable life of 5 years will be fully depreciated
in:
○ a. 6 years due to the use of double declining method
O b. 5.5 years due to the use of written down value method
O c. No option is correct
○ d. 3.5 years due to the half-year convention
O e. 5 years
Transcribed Image Text:A communication network of dealers who are trading shares for themselves and their clients
is known as;
a. organised market
O b. cyber market
○ c. an over-the-counter market
○ d. telephonic market
O e. All options are correct
When a company uses more cash in a year than it sources for itself;
O a. it is always an indication that the cash balance in the balance sheet will reduce in the
coming year.
O b. it is always an indication of eroding shareholder wealth
○ c. it is always an indication of it becoming less profitable
O d. it is always an indication that the company has paid off a liability
O e. it is always an indication that the company has acquired an asset
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