Which of the following statements are true?
a. The discount rate is another name for the rate of return.
b. For an investment to be acceptable, the discount rate should equal or exceed the company's cost of capital.
c. A return of capital and a return on capital are not the same thing.
d. All of the above statements are true.
d
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If LaPearla’s long-term debt and paid-in capital accounts remain at their 2005 levels, the tax rate remains at the 2005 rate, and all other income statement and balance sheet accounts are sales-driven with an expected growth rate of revenues of 10%, in 2006 LaPearla will have a financing:
LaPearla Company Income Statement for Year 2005 (in millions) LaPearla Company Balance Sheet, End of Year 2005 (in millions) Revenues h10,000 Current assets h2,000 Cost of goods sold 5,500 Net plant and equipment 18,000 Gross profit h4,500 Total assets h20,000 Selling, general, and administrative expenses 800 Operating income h3,700 Current liabilities h1,000 Interest expense 500 Long-term debt 5,000 Earnings before taxes h3,200 Common stock and paid-in capital 500 Taxes 960 Retained earnings 13,500 Net income h2,240 Total liabilities and equity h20,000 A. deficiency if it pays no dividends. B. surplus if it pays out 50% of its net income in dividends. C. deficiency if it pays out 50% of its net income in dividends.
The average depth of a standard closet in the house is which of the following:
a. 2 feet. b. 3 feet. c. 4 feet. d. 5 feet.