Creative accounting might clash with the idea

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1. Why do you think that creative accounting might clash with the idea that the financial statements should give a true and fair view of the accounts.

2. Kent Farms is an all-equity financed firm with a beta of 1.47 and a cost of equity of 18.27 percent. The risk-free rate of return is 3.75 percent. What discount rate should the firm assign to a new project that has a beta of 1.54?

3. A project has cash flows of -$45,000, $12,000, $15,000, and $22,000 for years 0 to 3, respectively. The required rate of return is 16 percent. Based on the net present value of ________, you should ________ the project.

Reference no: EM131932305

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