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A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
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Q: what is the required rate of return?
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A: In capital budgeting, the crossover rate is crucial because it enables decision-makers to ascertain…
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Q: What will the return on equity (ROE) be if the capital structure is 60% equity and 40% debt?
A: The return on equity assesses a company's profitability in relation to the equity of its owners. It…
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A: No of years = 20 yearsSemi-annual period = 20 x 2 = 40 periodsMarket value = $930Bond rate = 8%Par…
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A: Bonds are kind of loan which are issued at discount and that discount is the rate of return realized…
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A: FV is a time value which helps in reflecting an investment at a specific time in future, on the…
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Solved in 3 steps
- Explain how cost information differs for profit measurement/inventory valuation requirements compared with decision-making requirements.Define the following terms, and explain the relationship between them: (a) cost estimation, (b) cost behavior, and (c) cost prediction.Is current cost included in the overall measurement bases? or only in the current value?
- Identify the importance of marginal and absorption costing on profit determination and inventory valuation.What are the disadvantages and advantages of Analysis at the account level technique?A quantitative analysis enables a decision maker to put a “price” on the sum total of the qualitative characteristics in a decision situation. Explain this statement, and give an example.
