Use the Following Information for Items

question 6

Multiple Choice

Use the following information for items
Obama Company sells its product for $25 per unit.During 2020, it produced 20,000 units and sold 15,000 units (there was no beginning inventory) .Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3.Fixed costs are: $300,000 manufacturing overhead, and $50,000 selling and administrative expenses.
-Ending inventory under variable costing is

• A)$60,000.
• B)$240,000.
• C)$360,000.
• D)$410,000.

Recognize why preferred stock can be considered similar to debt.

Identify examples of firms that may offer supernormal dividend growth rates and understand the conditions under which this can occur.

Define and understand the characteristics of common stock.

Understand the types and purposes of psychological tests, including personality, intelligence, and neuropsychological tests.

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Definitions:

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often noted in years.

Yield Spread

The difference between the yields of two bonds with differing credit qualities, maturities, or issuers.

Historical Levels

Refers to the past recorded levels or values of a financial metric, interest rate, stock price, or any other economic indicator.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of a percent.