Given annual returns of 6%, -4%, -12% and 20%, what is the arithmetic average? 2.50% 10.84% 9.31% 8.50% Smith Industries has 75,000 shares of common stock outstanding. The stock is currently selling for $57 a share. The firm also has 2 bond issues outstanding. Each bond in all issues has a face value of $1,000. The first bond issue has a total face value of $500,000 and pays 8 percent interest annually. This bond is selling at 102.4 percent of face value. The second bond issue consists of 10,000 bonds which are selling for $990 each. These bonds pay 7 percent interest annually and mature in 15 years. The tax rate is 34 percent. What is the capital structure weight of the firm's common stock? 30.30% 29.11% 33.33% 62.98% Which one of the following comparisons between debt and equity is correct? Stockholders are the owners of the firm and vote on all major decisions. The stockholders have first claim to the firm's assets and are the owners. The creditors are the firm's owners and they have a higher claim to the firm's assets than do the stockholders. Both creditors and stockholders vote to elect the board of directors. A cost that has already been incurred and cannot be recouped is referred to as a(n) cost. sunk side opportunity financial The financial statement that summarizes a firm's operations over a period of time is called a(n) cash flow statement. income statement. balance sheet. periodic operating statement