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Anna [14]
3 years ago
10

Which of the following statements is CORRECT? a. Suppose some of a publicly-traded firm's stockholders are not diversified; they

hold only the one firm's stock. In this case, the CAPM approach will result in an estimated cost of equity that is too low in the sense that if it is used in capital budgeting, projects will be accepted that will reduce the firm's intrinsic value. b. The cost of capital used to evaluate a project should be the cost of the specific type of financing used to fund that project, i.e., it is the after-tax cost of debt if debt is to be used to finance the project or the cost of equity if the project will be financed with equity. c. The bond-yield-plus-risk-premium approach is the most sophisticated and objective method for estimating a firm's cost of equity capital. d. The after-tax cost of debt that should be used as the component cost when calculating the WACC is the average after-tax cost of all the firm's outstanding debt. e. The cost of equity is generally harder to measure than the cost of debt because there is no stated, contractual cost number on which to base the cost of equity.
Business
1 answer:
ivolga24 [154]3 years ago
6 0

B is the answer

Because it was right

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Which of the following statements is false? (2 points) If a tangible asset has a finite life, it should be amortized Goodwill is
ss7ja [257]

Answer:

The correct answer is (d)Research and development costs are expensed when incurred, except when the research and development expenditures result in a successful patent.

Explanation:

Research and development costs must be recognized as an expense within the accounting period in which they are presented, since regardless of whether or not a patent was obtained, the organization incurred costs represented in the research and development process that was executed. When this process generates a patent, it is necessary to recognize said right in an asset, but at no time will it be equal to the expenses incurred in the investigation process, since the company hopes to commercialize that knowledge for its own benefit.

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3 years ago
Microeconomics question, please help...70 pts!
Blababa [14]

price : 5 quantity 3

price 10 quantity 6

and so on

6 0
3 years ago
When two proprietors decide to combine their businesses and form a partnership, gaap usually requires that noncash assets be tak
Tcecarenko [31]
When proprietors decide to combine their business and form a partnership, gaap usually requires that non cash assets be taken over at : C. fair market vale
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8 0
3 years ago
Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance e at 12/
Viefleur [7K]

Answer:

A) $704,000.

Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

Total purchases = cost of goods sold + ending inventory - opening inventory

= $720,000 + $188,000 - $200,000

= $708,000

Now cash payment to merchandise is

= Beginning account payable balance + purchased made - ending account payable balance

= $80,000 + $708,000 - $84,000

= $704,000

Hence, the correct option is A. $704,000

3 0
3 years ago
Grouper Corp. retires its $640000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying v
AleksAgata [21]

Answer:

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $640,000

Premium on bonds payable A/c Dr $23,970

Loss on bonds redemption A/c $8,030

         To Cash A/c $672,000                     ($640,000 × 1.05)

(Being the redemption of bond is recorded and the remaining balance is debited to the Loss on bonds redemption account)

The Premium on bonds payable is computed below:

= Carrying value of the bonds - face value of the bond

= $663,970 - $640,000

= $23,970

4 0
3 years ago
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