Answer the following statement(s) true (T) or false (F)
1. In the horizontal analysis of the income statement, each item is generally stated as a percentage of net income.
2. Liquidity ratios compare current assets to current liabilities because it is assumed that current liabilities will be paid out of current assets.
3. Inventory turnover measures the number of times on the average the inventory was sold during the period.
4. Profitability ratios are frequently used as a basis for evaluating management's operating effectiveness.
5. Diversification in American industry enhances the usefulness of financial analysis.
1. false
2. true
3. true
4. true
5. false
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Which of the following is correct if an underwriter is selling stock to the public at $40 per share, the underwriter receives a $3 per share spread, 2 million shares are sold, and the issuing firm receives $111 million from the underwriter?
A. The underwriter's spread was greater than $3 B. The issue appreciated in price immediately C. The issue included 3 million shares D. The stock was issued on a best efforts basis
Most workers in poor, less developed nations are motivated by the desire to satisfy:
A. physiological needs. B. social needs. C. esteem needs. D. empathetic needs.