. All of the following are likely to result in the use of less debt in a company’s capital structure expect: (Points : 1) , Desire to maintain financial flexibility, Desire to maintain a high credit rating, Insufficient internal funds, An increase in a company’s marginal tax rate,,2. Amish Enterprises makes wooden play sets. The company pays annual rent of $350,000 per year and pays administrative salaries totaling $120,000 per year. Each play set requires $300 of wood, ten hours of labor at $50 per hour, and variable overhead costs of $50. Fixed advertising expenses equal $40,000 per year. Each play set sells for $ 2,350. What is Amish Enterprises’ break even output level? (Points : 1) , 340 play sets, 217 play sets, 159 play sets, 270 play sets,,3. A plant may remain operating when sales are depressed _________ (Points : 1) , If the selling price per unit exceeds the variable cost per unit, To help the local economy, In an effort to cover at least some of the variable cost, Unless variable costs are zero when production is zero,,4. Operating leverage refers to ________ (Points : 1) , Financing a portion of the firm’s assets with securities bearing a fixed rte of return, The additional chance or insolvency borne by the common shareholder., The incurrence of fixed operating costs in the firm’s income stream, A high degree of variable costs of production,,5. Financial leverage could mean financing some of a firm’s assets with _______ (Points : 1) , Common stock, Retained earnings, Corporate bonds, Sales revenues,,6. A high degree of variability in a firm’s earnings before interest and taxes refers to _______ (Points : 1) , Business risk, Financial risk, Financial leverage, Operational leverage,,7. JB Corporation has a retained earnings balance of $1,000,000. The company reported net income of $200,000, sales of $2,000,000, and had 100,000 shares of common stock outstanding. The company announced a dividend of $ 1 per share. Therefore, the company’s dividend payout ratio is _________. (Points : 1) , 10%, 20%, 50%, 100%,,8. Which of the following statements would be consistent with the Dividend Irrelevance Theory? (Points : 1) , There is no relationship between a firm’s dividend policy and the value of its common stock., Perfect capital markets are assumed to exist which allow investors to buy and sell stock without incurring any transaction costs., Investors are indifferent whether stock returns come from dividend income or capital gains income., All of the above.,,9. Dividends generally _______ (Points : 1) , Are paid as a fixed percentage of earnings., Fluctuate more than earnings., Are guaranteed by the SEC., Are more stable than earnings.,,10. All of the following may influence a firm’s dividend payment except: (Points : 1) , Investment opportunities., Investor transaction costs, Common stock par value, Flotation costs
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