Shareholder wealth maximization means A. maximizing earnings per share. B.maximizing dividends per share. C. maximizing the price of existing common stock. D. maximizing stockholders equity. ANSWER:

Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's operating income is equal to A. $770,000. B. $1,070,000. C. $1,100,000. D. $1,500,000. ANSWER:

The basic format of an income statement is A. Sales - Expenses = Profits. B. Income - Expenses = EBIT. C. Sales - Liabilities = Profits. D. Assets - Liabilities = Profits. ANSWER:

Company A and Company B both report the same level of sales and net income. Therefore, A. both A and B will report the same Earnings Per Share. B. both A and B will report the same Gross Profit Margin. C. both A and B will report the same Net Profit Margin. D. both A and C are true. ANSWER:

A firm's financing costs include A. depreciation expense. B. interest expense C. costs of goods sold. D. both A and B. ANSWER: