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NEW QUESTION: 1
Which of the following is correct?
A. A contract is frustrated when something happens, after it has been entered into, which renders the contract impossible to perform.
B. A contract is frustrated when a party expressly agrees to manufacture and supply goods and then discovers that they will be far more expensive to produce than they thought at the time of the contract.
C. A contract is frustrated when something happens, after it has been entered into, which renders the contract more difficult to perform.
D. A contract is frustrated if it is impossible to perform at the time that it is made.
Answer: C
NEW QUESTION: 2
Which of the following formulas should be used to calculate the economic rate of return on common
stock?
A. (Dividends + change in price) divided by beginning price.
B. Dividends per share divided by market price per share.
C. (Net income - preferred dividend) divided by common shares outstanding.
D. Market price per share divided by earnings per share.
Answer: A
Explanation:
Choice "a" is correct. The economic rate of return on common stock measures the dividend income and
capital growth in relation to the initial investment, the beginning price of the stock.
Choice "b" is incorrect. The proposed solution is earnings per share, a ratio generally computed as the
earnings available to common shareholders (net income after payment of preferred shares) divided by the
common shares outstanding.
Choice "c" is incorrect. Market price per share divided by earnings per share is the price/earnings or P/E
ratio, not the economic rate of return on common stock.
Choice "d" is incorrect. The dividends per share divided by the market price per share does not represent
the economic rate of return on common stock, the ratio includes change in stock value in the denominator
rather than the numerator of the equation.
NEW QUESTION: 3
Which quantifiable item should you consider when your organization adopts new technologies?
A. exploits
B. vulnerability
C. risk
D. threats
Answer: C
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