Financial-Management 무료 덤프문제 온라인 액세스

What is the purpose of the Sarbanes-Oxley Act requirement for the board of directors to effectively represent shareholders?

• A.To ensure the board's financial gain
• B.To increase stock prices
• C.To manage daily operations
• D.To represent shareholders' interests in good faith

A company has just increased its dividend payout ratio.
What effect will this have on the company's sustainable growth rate?

• A.The sustainable growth rate will decrease.
• B.The sustainable growth rate will either increase or decrease depending on the result of the change in dividend payouts on the plowback ratio.
• C.The sustainable growth rate will increase.
• D.The sustainable growth rate will remain the same because the increase in the dividend payout ratio will be offset by a decrease in return on equity.

What is a potential drawback of lowering the annual dividend payment?

• A.It could possibly increase the company's net margin.
• B.It might lead to higher sales growth for the company.
• C.It can lead to an immediate increase in the company's stock price.
• D.It may cause the company's stockholders to react negatively.

What is a holding cost in inventory management?

• A.The discount given to customers for bulk purchases of inventory
• B.The expense associated with the potential damage or price changes of inventory
• C.The time incurred until accounts receivable are collected from inventory sold
• D.The purchase of equipment to turn material into finished inventory

How does company size relate to capital structure in terms of access to financing options?

• A.Larger companies are more reliant on internal financing.
• B.Larger firms often have broader access to both debt and equity markets.
• C.Smaller companies are better able to access lower costs of capital for debt.
• D.Smaller firms have better access to secured loans.