One year ago, you purchased 500 shares of Best Wings, Inc. stock at a price of $9.60 a
share. The company pays an annual dividend of $0.10 per share. Today, you sold all of
your shares for $15.60 a share. What is your total percentage return on this investment?
A. 38.46 percent
B. 39.10 percent
C. 39.72 percent
D. 62.50 percent
E. 63.54 percent
The costs incurred by a business in an effort to avoid bankruptcy are classified as _____
B. direct bankruptcy
C. indirect bankruptcy
D. financial solvency
E. capital structure
In general, the capital structures used by U.S. firms:
A. tend to overweigh debt in relation to equity.
B. generally result in debt-equity ratios between 0.45 and 0.60.
C. are fairly standard for all SIC codes.
D. tend to be those which maximize the use of the firm's available tax shelters.
E. vary significantly across industries.
The type of exchange rate risk known as translation exposure is best described as:
A. the risk that a positive net present value (NPV) project could turn into a negative
NPV project because of changes in the exchange rate between two countries.
B. the problem encountered by an accountant of an international firm who is trying to
record balance sheet account values.