To record the purchase of treasury stock, a. debit treasury stock—common (par value) and credit cash (same). b. debit treasury stock—common (purchase price) and credit cash (same). c. debit treasury stock—common (par value) and debit any difference to paid-in capital; credit cash (purchase price). d. none of the above

Why should managers invest any excess cash

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.

Amazon inc. does not currently pay a dividend. analysts expect amazon to commence paying annual dividends in three years. the first dividend is expected to be $2 per share. dividends are expected to grow from that point at an annual rate of 4% in perpetuity. investors expect a 12% return from the stock. what should the price of the stock be today?