Finance Prep

Among solutions to the agency problem in publicly-held corporations are all of the side by side(p) EXCEPT conclude a.stock options. b.performance shares. c.cash bonuses tied to goal achievement. d.bonuses establish on short-term results. 4 points A more new-made reward that is causing major problems in the business corporation is Answer a.the privatization of ownership. b. short-term versus long-term financial goals of commission. c.ethical problems d.environmental concerns. merged ethics policies typically apply to ________ in dealing with ________. Answer a.employee actions; customers and creditors b.employee actions; customers, vendors, and regulators c.management actions; all bodily constituents d.employee actions; all corporate constituents On its 2010 relief sheet, Barngrover Books showed $510 million of hold earnings, and exactly that same amount was shown the chase year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT? Answer a.If the friendship illogical money in 2010, they must have nonrecreational dividends. b.The participation must have had zero net income in 2010. c.The familiarity must have paying(a) out fractional of its earnings as dividends.

d.The company must have paid no dividends in 2010. e.Dividends could have been paid in 2010. Companies show income from their regular operations and from other sources like interest clear on the securities they hold, which is called non-operating income. Lindley Textiles of late reported $12,500 o f sales, $7,250 of operating costs other tha! n 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 tax rate was 40%. How a spectacular deal was Lindleys operating income, or EBIT? Answer a.$3,462 b.$3,644 c.$3,836 d.$4,038...If you want to get at a broad essay, order it on our website: BestEssayCheap.com

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