Critics have charged that compensation to top managers in the United States is simply too high and should be cut back. For example, focusing on large corporations, David Novak of fast food operator Yum! Brands has been one of the best-compensated CEOs in the United States, earning about $29.67 million in 2010 alone and $199.88 million over the 2006–2010 period. Are such amounts excessive? In answering, it might be helpful to recognize that superstar athletes such as LeBron James, top entertainers such as Tom Hanks and Oprah Winfrey, and many others at the top of their respective fields earn at least as much, if not a great deal more.
Answer to relevant QuestionsReferring back to the Bank of America example used at the beginning of the chapter, note that we suggested that Bank of America’s stockholders probably didn’t suffer as a result of the reported loss. What do you think ...Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.3 million. Klingon’s current balance sheet shows net fixed assets of $3.2 ...Given the information for Maria’s Tennis Shop, Inc., in Problems 11 and 12, suppose you also know that the firm’s net capital spending for 2011 was $1,300,000 and that the firm reduced its net working capital investment ...Zigs Industries had the following operating results for 2011: sales = $27,360; cost of goods sold = $19,260; depreciation expense = $4,860; interest expense = $2,190; dividends paid = $1,560. At the beginning of the year, ...Boom Lay Corp. has a current accounts receivable balance of $327,815. Credit sales for the year just ended were $4,238,720. What is the receivables turnover? The days’ sales in receivables? How long did it take on average ...
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