Partial ownership of a firm that is considered to be the strongest and financially sound is done through what method?
A) Buying of mutual funds
B) Buying of blue-chip stocks
C) Dividend reinvestment
D) Funding of aggressive growth opportunities
E) Buying of load funds
Answer: B
Explanation: B) The so-called blue-chip stocks, those issued by the strongest, well-established, financially sound and respected firms, such as Coca-Cola and ExxonMobil, have historically provided investors steady income through consistent dividend payouts.
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Trips to Remember, Inc provides vacation trips to various locations around the world. The
company's headquarters are located in Meadows Place, TX. The headquarters provide two main services to the four tourist locales: accounting and customer services (reservations). Budget and actual data for each of the four tourist locations are as follows: Locations Danville Huntsville Niceville Prattville Total Budgeted Number of Trips Sold 400 300 300 200 1,200 Actual Number of Trips Sold 450 250 420 180 1,300 Budgeted Average Sales Revenue per Trip $100.00 $90.00 $100.00 $110.00 Actual Average Sales Revenue per Trip $115.00 $85.00 $120.00 $105.00 Budgeted Average Variable cost per Trip $50.00 $30.00 $35.00 $40.00 Actual Average Variable cost per Trip $52.00 $47.00 $36.00 $38.00 Budgeted Fixed Costs by Location $11,000 $9,000 $10,000 $10,000 $40,000 Actual Fixed Costs by Location $10,500 $9,500 $10,000 $10,200 $40,200 Budgeted Traceable Accounting Costs $5,500 $5,500 $5,500 $5,500 $22,000 Actual Reports Requested from Accounting 50 40 60 50 200 Budgeted Traceable Customer Service Costs $9,000 $5,500 $3,500 $3,500 $21,500 Actual Calls by Location 12,000 15,000 21,000 12,000 60,000 The Accounting Services Department actually incurred $11,000 in accounting costs for May 2012. The Reservation Department incurred $23,000 in actual costs, of which $20,000 were traceable to the locations. Which is the best method to allocate traceable accounting costs? A) Operating Income B) Number of calls by location C) Number of reports requested D) Contribution Margin
Winwood Construction purchased a crane on January 1 . 2013 . for $102,750 . At the time of purchase, the crane was estimated to have a life of six years and a residual value of $6,750 . In 2015, Winwood determined that the crane had a total useful life of seven years and a residual value of $4,500 . If Winwood uses the straight-line method of depreciation, what will be the depreciation expense
for the crane in 2015? a. $16,000 b. $13,250 c. $9,464 d. $8,000