Answer:
A) The GAAP statement is based on cost function rather than cost behavior.
Explanation:
Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative. 
While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?
 
        
             
        
        
        
Answer:
hope this helps uuuuu.......
Explanation:
D........A complete set...
 
        
             
        
        
        
Answer:
Kd = 7%
Ke =      D1      +  g
         Po(1 - FC)
Ke =      $2            + 0.09
         $40(1 - 0.15)
Ke =       $2      +  0.09
               $34
Ke = 0.1488 = 14.88%
WACC = Ke(E/V) + Kd(D/V)(1-T) 
WACC = 14.88(60/100) + 7(40/100)(1 - 0.40)
WACC = 8.928 + 1.68
WACC = 10.6%
Explanation:
In this case before-tax cost of debt is given. Cost of equity is expected dividend divided by current market price after flotation cost plus growth rate. WACC is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.