Reference no: EM132944644
Problem 1. The pre-tax cost of capital is higher than the after-tax cost of capital because
a. interest expense is deductible for tax purposes.
b. principal payments on debt are deductible expense for tax purposes.
c. the cost of capital is a deductible expense for tax purposes.
d. dividend payments to shareholders are deductible for tax purposes.
Problem 2. All other factors equal, a large number is preferred to a smaller number for all capital project evaluation measures except
a. net present value
b. payback period
c. internal rate of return
d. profitability index
Problem 3. If investment A has a payback period of three years and investment B has a payback period of four years, then
a. A is more profitable than B.
b. A is less profitable than B.
c. A and B are equally profitable
d. the relative profitability of A and B cannot be determined from the information given.
|
Discuss the components of intellectual capital
: Critically discuss the components of intellectual capital and detail how these components interact to produce value for the business.
|
|
Compute the accounts receivable as of that date
: Assume that the company will prepare a budgeted statement of financial position as of September 30. Compute the accounts receivable as of that date.
|
|
What was compound annual rate of return over the period
: You invest $10,000 in August 2004. In August 2009, the investment is worth $12,000. What was your compound annual rate of return over the period?
|
|
Apply the macdonald methodology to solve the case
: Apply the Macdonald methodology to solve the case. You have just obtained your CPA designation and have decided to open up your own public accounting
|
|
Which a large number is preferred to a smaller number
: All other factors equal, which a large number is preferred to a smaller number for all capital project evaluation measures except
|
|
Demonstrate the double entry convention
: 30 year bank loan for $5,000,000. Demonstrate the Double Entry Convention and the Accounting Equation convention in relation to this transaction.
|
|
Explain benefits for the stockholders
: Explain benefits for the stockholders, which would be those elements that affect the profits, future profits, or stock price of the firm and benefits for the gr
|
|
How can representativeness bias
: How can representativeness bias, availability bias, overconfidence bias and anchoring bias can effect your decision making?
|
|
Which journal should york record the transactions
: York Trading has the following transaction for the month of November. In which Journal should York record these transactions?
|