San Francisco's famous St. Francis Hotel is owned by Westin Hotel and Resort Group. Westin should evaluate the St. Francis as:
A. A cost center.
B. A historical landmark.
C. An investment center.
D. A profit center (other than an investment center).
C
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If a company uses the periodic inventory system, what is the impact on the current ratio of including goods in transit f.o.b. shipping point in purchases, but not ending inventory?
a. Overstate the current ratio. b. Understate the current ratio. c. No effect on the current ratio. d. Not sufficient information to determine effect on the current ratio.
Buckco’s WACC is closest to:
A financial analyst at Buckco Ltd. wants to compute the company’s weighted average cost of capital (WACC) using the dividend discount model. The analyst has gathered the following data: Before-tax cost of new debt 8% Tax rate 40% Target debt-to-equity ratio 0.8033 Stock price $30 Next year’s dividend $1.50 Estimated growth rate 7% A. 8%. B. 9%. C. 12%