If a firm has set up a revolving credit agreement with a bank, the risk to the firm of being unable to obtain funds when needed is lower than if it had an informal line of credit. a. Trueb. False

Which of the following is NOT an aspect of capitalism? A. Resources B. Cooperation C. Capital D. Labor

Which of the following best describes a leveraged buyout fund's acquisitions? a. Investing in early stage businesses b. Investing in mid-sized businessesc. Investing in foreign businesses

Select the correct definition of inflation. a specific increase in the price of a good or service attributable to changes in supply or demandan increase in the level of output in an economy evidenced by a rising GDPa general and ongoing rise in

Ray Corp. declared a 5% stock dividend on its 10,000 issued and outstanding shares of $2 par value common stock, which had a fair value of $5 per share before the stock dividend was declared.

Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?

The pecking order explanation of capital structure states that a hierarchy of financing exists for firms, in which retained earnings are employed first, followed by debt financing and finally by external equity financing. A. TrueB. False

Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service.

Why are the three economic questions important in econ?

New School Inc. expects an EBIT of $7,000 every year forever. The firm currently has no debt, and its cost of equity is 15 percent. The firm can borrow at 8 percent and the corporate tax rate is 34 percent.

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas.