A Firm in a Declining Industry Has Not Been Able

question 52

Multiple Choice

A firm in a declining industry has not been able to identify any positive NPV projects in which to invest. In such a case, firm's management should

• A)look for a firm to buy that is in an entirely different industry.
• B)increase its use of debt in order to decrease its cost of capital, which might result in positive NPV projects being available.
• C)invest any excess cash in U.S. Treasury securities in order to earn at least a small return for the firm's shareholders.
• D)pay out excess cash to its shareholders by increasing dividends and/or share repurchases.

Recognize the navigation and orientation methods used by animals, including landmarks, celestial navigation, and compass orientation.

Understand the mechanisms and importance of auditory and visual signals in animal communication.

Describe the principles of animal navigation, including homing and the use of environmental cues.

Explain the significance of reproductive strategies and costs in males and females, including the energetic and opportunity costs.

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Definitions:

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet, corresponding to the double-entry bookkeeping system.

Debits

Entries made on the left-hand side of an account record in double-entry bookkeeping, indicating increases in assets or expense accounts, or decreases in liabilities, equity, or revenue accounts.

Account Balance

The amount of money present in a financial account at any given moment, which can be positive (credits) or negative (debits).

Chart of Accounts

An organized list of all the accounts in a company's general ledger, used for recording and reporting financial transactions.