True false 2. The profitability ratios reflect the net result of all of the financing policies and operating decisions. *

3. It might be possible to improve the ROE by using more debt, which in turn will lead to an increase in the P/E ratio and thus in the firm’s stock price *

4. The current real rate is the current interest rate minus the current (or latest past) inflation rate, while the real rate (without the word current) is the current interest rate minus the expected future inflation rate over the life of the security. *

5. Interest rate risk is the risk that a decline in interest rates will lead to lower income when bonds mature and funds are reinvested. *

True or false: banks are required to make electronically deposited funds available on the same day of the deposit

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500