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In order to reduce the conflict of interest between stockholders and managers a company could change manager stock options so that they vest over a shorter period of time.

If Jackson is trying to identify the color of a bird in a well-lit area, for his field experiment, what part of the eye would be activated?

Given the following term structure and assuming the unbiased expectation theory holds, answer the following questions (round to the nearest .000001 or 6 decimals):         Term Structure of Treasury Securities  Year          Yield %     1                3.0     2                3.4     3                3.6     4                3.9     5                3.2     6                4.4   a. What is the 5-year rate 1 years from today?     b. What is the 2-year rate 3 years from today?

When distributing new stock through a best efforts process, the investment banker does not serve as an underwriter for the issue.

The more capital a firm is likely to require, the lower the probability that it will be organized as a corporation because of double taxation.

In a statement of cashflows dividends are excluded because they are not considered an operating activity.

A stock’s market price will equal its intrinsic value if all investors have all the publicly available information about the stock.

Austin Aeronautics had $85,000 in cash at year-end 2014 and $255,000 in cash at year-end 2015. The firm sold property, plant, and equipment totaling $50,000. Cash flow from financing activities totaled +$30,000. a. What was the cash flow from operating activities? b. If accruals decreased by $25,000, receivables and inventories together increased by $120,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?

Everett Enterprises recently reported the following information:   Net income                                                        $ 620,000 ROA                                                                              9% Interest expense                                               $ 325,000 Accounts payable and accruals                       $500,000         Everett’s tax rate is 48%. Everett finances with only debt and common equity, so it has no preferred stock. 70% of its total invested capital is debt, and 30% of its total invested capital is common equity.  a. Calculate its operating return on assets (OROA), its return on equity (ROE), and its return on invested capital (ROIC). b. Describe the effect of increasing debt on ROE  (assume total invested capital remains constant)

If Adams Corp issued new stock through a Dutch Auction where they needed to sell 100 shares of stock, based on the below bids, at what price would the stock sell?   Bid Price ($) Number of Shares Investor A 92 35 Investor B 77 80 Investor C 83 100 Investor D 86 20 Investor E 89 62