All of the following qualitative considerations may impact upon capital investment analysis except manufacturing sunk cost
.
Option c
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Explanation:
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In a manufacturing setup or any business environment Capital investment plays a major role. To do the long term investment and to assess the profitability the company will do a budgeting procedure is called the capital investment analysis.
The assessment of fixed assets like equipment, machines of a manufacturing sector is done by the capital investment analysis. From the above the manufacturing sunk cost is not considered for the analysis because it the money which has spent already that cannot be recovered.
Answer:
False.
Explanation:
Communication through business messages should convey the information in the simplest words so that the other party can easily understand what is being said. It also needs to be brief and to the point.
Using high level diction liberally in business communication leads to unclear messaging. The reader may not know the meaning of the words so the aim of communication will be defeated.
Also high level diction can have different meanings in different circumstances.
High level diction should be used sparingly, and simple diction is preferred.
I think they are all benefits of implementing computerized medical records.
Explanation:
Ray, the owner of a small corporation, ordered CPA Holmes to perform a record audit. Ray told Holmes that a loan application should include a prompt analysis of the audited financial statements of a bank. Holmes acknowledged the agreement unanimously and decided that an auditor's report should be given within 3 weeks. If the loan was granted, Ray accepted to pay Holmes a fixed fee plus a bonus.
Two accountant graduates were employed by Holmes to perform the audit and spent several hours saying exactly what to do. Holmes told the students to concentrate instead on providing accurate statistical facts in the documents and summing up a date that confirms Ray's financial statements that do not include footnotes, instead of testing the controls.
Holmes checked the documents and produced a report of the auditor without qualification. The article applies neither to the GAAPs nor to their consistent application.
Answer: A. She believes the company has become riskier, and therefore increases her required rate of return for the stock.
Explanation:
The formula for the Constant dividend growth model of valuing stock is:
<em>= Next dividend / (Required return - growth rate)</em>
From the formula above, one can tell that if the required return is higher, it would result in a lower value for stock because it would divide the numerator more.
If the analyst believes that the company is riskier and increases the required return, the value would therefore reduce if other measures are kept constant.
