Which of the following line items of the statement of cash flows must be obtained from the income statement?
A) accruals in current liabilities
B) interest expenses
C) accounts receivable
D) cash dividends paid on both preferred and common stocks
B
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A two-year investment of $200 is made today at an annual interest rate of 6%. Which of the following statements is true?
A) The interest earned in year two is $12.00 and year one is $12.72. B) The interest earned in year one is $12.00 and year two is $12.72. C) The FV is $224.00. D) The future value would be greater if the interest rate were lower.
Which of the following statements is FALSE?
A) New SEC rules require firms to report option grants within two days of the grant date, which may help prevent further abuses. B) Studies have found evidence that the practice of timing the release of information to maximize the value of CEO stock options is widespread. C) Managers have an incentive to manipulate the release of financial forecasts so that good news comes out before options are granted and bad news is delayed until after the options are granted. D) The factor contributing most to the climb in CEO total compensation for the 1990s was the sharp increase in the value of stock and options granted each year.