Which of the following will most likely result in an increase in discretionary funding needed?
A) The company pays its accounts payable in 50 days, up from 45 days.
B) The company's assets are only operating at 50% of capacity.
C) The company's dividend payout ratio increases.
D) The company's profit margin increases.
C
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Which of the following trading strategies are correct?
I. If you expect the British pound to appreciate in value, you should short the pound. II. If you expect interest rates to rise, you should go long on interest rate futures. III. If you expect the stock market to rise, you should go long on stock-index futures. IV. If you expect the stocks in your portfolio to temporarily decline in value, you should short stock-index futures. A) I and II only B) II and IV only C) III and IV only D) I and III only
Which of the following is true of the net asset method?
A) It requires the forensic accountant to adjust the company's balance sheet from book value to fair market value. B) It determines a company's value as the difference between the book value of its assets and the fair market value of its liabilities. C) It commonly requires the forensic accountant to use his or her judgment to arrive at the fair market value assessments. D) It involves the development of a proxy benefit and the capitalization of this benefit to provide an indicated business value.