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grigory [225]
3 years ago
5

The Sarbanes-Oxley Act of 2002 holds a public company's _____ responsible for the accuracy of the company's financial statements

.Multiple Choicemanagersinternal auditorsexternal legal counselinternal legal counselSecurities and Exchange Commission agent
Business
1 answer:
levacccp [35]3 years ago
7 0

Answer:

The answer is: Management

Explanation:

Management (usually CEO and CFO) is responsible for preparing the financial statements of a publicly traded company. So they are ultimately responsible for the accuracy, integrity and objectivity of the financial statements.

Besides management, an independent auditor is responsible for examining the financial statement information and expressing an opinion on their accuracy.

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Which of the following statements does correctly explain the effect of additional debt on the weighted average cost of capital (
Aleksandr-060686 [28]

Answer: The net effect of additional debt on WACC is uncertain.

Explanation:

Weighted Average Cost of Capital (WACC) refers to the rate of return that a company is paying it's capital providers on average be it debt holders or shareholders.

Adding additional debt to the mix effects the WACC in an uncertain way due to the different ways the WACC could react. For example, adding additional debt decreases the after-tax cost of debt because debt is tax deductible which means that more money can flow to shareholders so that reduces the cost of equity. At the same time however, Additional debt can increase the risk of bankruptcy meaning that the before tax cost of debt rises which also increase the WACC.

The effect can swing either way thereby making it uncertain.

5 0
3 years ago
You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
Amanda [17]

Answer:

6.14%

Explanation:

The rate of return for the date given in the question for the asset shall be determined through calculating Internal rate of return on this asset, which shall be calculated as  follows:

Year          Cash flow               Present [email protected]%     Present [email protected]%

0               ($7,250)                  ($7,250)                      ($7,250)

1                 $750                       $714.29                      $681.82

2                $1,000                    $907.03                     $826.45

3                $850                       $734.26                     $638.62

4                 $6,250                    $5,141.89                   $4,268.83

                                                   $247.7                       ($834.28)

IRR=A%+[a/(a-b)*(B%-A%)]

A%=5%, a=$247.7 B%=10%  b=(834.28)

IRR=5%+[247.7/(247.7+834.28)*(10%-5%)]

IRR=6.14%

4 0
3 years ago
If ZipCar engaged in all the activities discussed in the video, but then sold customer data to a third party in a contradiction
Naya [18.7K]

Answer:

The correct option is: both socially responsible and ethical.

Explanation:

To begin with, the fact that the company sold customer data to a third party, even thought that it engaged in all the other activities as promised, it will make it to be both socially responsible and ethical and that is because in a court the judge will be in favour of the more weak party, that is the customer whose date was sold without his approval to a third party, and therefore that in social terms the company will be guilty. Also, that action will affect the company in terms of ethical because once that it is all known by the customers whose date was sold then they will start a campaign in order to destroy the company's ethical image by the public and that will cause a huge decrease in the sales.

5 0
3 years ago
Please help! <br><br>How can easy access to credit lead to Financial Mistakes and Bankruptcy?
zvonat [6]

Answer: over-borrowing.

Explanation:

credit cards function like this: you can "buy" a lot of things with it, including very very expensive things. this is because instead of really buying that product, you borrow money from the bank to buy it. you then have to pay it off in slower amounts of money over time until youve paid off the original cost of the product and more because the bank will most likely charge interest.

sounds great, right?

it is, until you cant afford to pay those smaller amounts of money. then, it starts to build up and if you still cant afford to pay the bank, they will begin to liquidize your physical assets (they take your stuff as payment, really anything, even your house can be taken.)

3 0
3 years ago
Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per pound. Owen breaches the contract a
Katyanochek1 [597]

Answer:

d. the difference between the market price of

the coffee and the contract price.

Explanation:

Damages can be described as the loss caused

by a breach of a contract. They are measured

and expressed in monetary units. Damages

arise because one person in a contract has

not fulfilled their obligation. As a resut, the

innocent party suffers losses or injury.

Damage compensation should take an injured

party to where they should have been if the

contract was not breached. For Marie, If the

contract was not breached, she would have

bought the coffee at $5 per pound. Her

damages would be the difference between thne

price she eventually paid for the coffee, and

the contract price of $5.

5 0
2 years ago
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