Hi, the correct answer is true. Hope I helped.
Barter means exchange since there was no currency back then so the answer would be D.
Answer:
$7.88 million
Explanation:
Net Income = (EBITDA- Interest - Dep)*(1-tax)
Net income = 9.7
Earnings before interest, taxes, depreciation and amortization; EBITDA = 29.60
Interest = 6.8
tax = 35% or 0.35
9.7 = (29.60 - 6.8 - Dep)(1-0.35)
9.7 = (22.8 - Dep)*0.65
Divide both sides by 0.65
9.7/0.65 = 22.8- dep
14.9231 = 22.8 -dep
Dep = 22.8 - 14.9231
Dep = 7.8769
Therefore, depreciation and amortization expense is $7.88 million
Answer:
B
Explanation:
Money has several functions, one of its principal function is using it as unit of account. By comparing the amount in dollars spent on running a car yearly to annual earnings instead of keeping track in terms of gasoline cost and quarts of oil shows that money has been used as a unit of account.
This means that the amount of gasoline gallons bought and quarts of oil has been essentially replaced by the cost of these purchases and hence avail is the power to use money as a unit of account
Answer:
It is E
Explanation:
Each different project has different risk profile i.e business risk and finance risk. At such , these risks must be adjusted for to produce project specific cost of capital.
If a company is investing in another line of business with a different risk profile to the existing business, this will have an impact on the WACC to be used to assess the viability of the new project.
Likewise, if the new project is being financed with a mixed of capital different from the current finance structure, such will equally impact on the WACC to be used.
