D. Ronald would be committing stock fraud if he exercises the options.
Explanation:
The first three options are valid reasons to turn down the offer of stocks in place of salary.
A. Stocks with high returns have high volatility, and Ronald's company may not grow further.
B. Ronald may be taxed more for capital gains than he would be for employment income.
C. Stock options are illiquid, and Ronald may not be able to use them to pay for unexpected bills.
Option D is NOT a valid reason to turn down the stock offer. So, the answer is:
D. Ronald would be committing stock fraud if he exercises the options.
Answer:
Its earnings per share will decrease.
Its return on equity will go down.
Its equity multiplier will go down.
Explanation:
Since net income remains the same, earnings per share will decrease. This happens because there will be more stocks outstanding (the denominator in the EPS formula), so the result will be lower.
Return on equity will also decrease, since net income will remain the same while equity increases (same logic as EPS).
Unless this company is 100% financed through equity, it will have some debt (liabilities). The equity multiplier = total assets / total equity. E.g. total assets increase from $20 to $22 million, and total equity increases from $30 to $32 million.
Original equity multiplier = $40 / $30 = 1.333
Equity multiplier after issuing more stocks = $42 / $32 = 1.3125
C. Its equity multiplier will go down.
D. Its current ratio will go down.
E. Its quick ratio will go down.
Answer:
The correct administrative remedy against such a contractor is to have them suspended.
Explanation:
The role of a technical evaluator is sensitive as it means that he or she would be privy to almost if not all information that has to do with the contract.
In the information provided, the technical evaluator's husband was offered a job at a company competing or bidding for a multi-million dollar contract she was also evaluating.
Their husband didn't ask for the job. They offered it so that they might gain information to their advantage.
The action of this contractor can be classified as fraudulent. One of the administrative actions that can be taken against such is to have them suspended with a threat to have their license permanently revoked if they should make a similar attempt again.
Cheers
I do believe your answer would be true.
Answer:
-Tax rates
-The general level of stock prices
Explanation:
The factors that a firm cannot control are the ones that it has no power to decide and they are determined by a third party. According to that, from the options given, the factors that the firm cannot control are tax rates because they are established by the government and the general level of stock prices because it is determined by the supply and demand in the market.
The other options are not right because the company can establish its process to evaluate investments and expenses and how to finance its assets with debt and equity.
