Which of the following is most often used as a cash substitute ?
a. Bankers’ acceptances.
b. Certificates of deposit
c. Municipal bonds.
d. Treasury bills
What is the effect of a stock dividend ?
a. Decreases future earnings per share
b. Decreases the debt-to-equity ratio
c. Increases the size of the entity
d. Increases some shareholders’ ownership percentages
A project’s net present value, ignoring income tax considerations, is normally affected by the
a. Proceeds from the sale of the asset to be replaced.
b. Carrying amount of the asset to be replaced by the project.
c. Amount of annual depreciation on the asset to be replaced.
d. Amount of annual depreciation on fixed assets used directly on the project.