In 1919, the Supreme Court Issued Its Ruling in the Case

question 72

Multiple Choice

In 1919, the Supreme Court issued its ruling in the case of Schenck v. United States. Charles Schenck, a leader of the American Socialist Party, was jailed for distributing antidraft leaflets during time of massive military buildup in the early months of American involvement in World War I. The Supreme Court rejected Schenck's request for release and in doing so established what precedent as a test of free speech?

• A) During war, a citizen is forbidden to criticize the government's actions.
• B) Speech may be restricted when a "clear and present danger" exists that the words will have a broad negative effect on the citizenry.
• C) During times of war, the president's administration approves all exceptions to free speech.
• D) The issue of restricting free speech is a state issue and is therefore out of the jurisdiction of the Supreme Court.
• E) When state court rulings and the Supreme Court rulings are in conflict, the state ruling will become law as states are closer to the people.

Calculate the cost of preferred stock.

Understand the concept of beta and its impact on the cost of equity and appropriate discount rates for projects.

Determine appropriate discount rates for specific project betas.

Calculate the expected stock market return based on dividend growth models.

---

Definitions:

Convenience Goods

Consumer products and services that are widely available and bought frequently with minimal comparison and effort by the consumer.

Account Management Policies

Policies that specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.

Job Security

The probability that an individual will retain their job without the risk of becoming unemployed, often related to the stability of the occupation or industry.

Direct Sales Promotions

Strategies and tactics implemented by companies to sell their products or services directly to consumers, bypassing intermediaries.