Which of the statement is FALSE Yang mana satu penyataan adalah SALAH? Select one: A. Capital is to be used to further increase the value of the company/ Modal akan digunakan untuk meningkatkan lagi nilai syarikat B. Capital is the net value of a company that exists in the form of cash, inventories & facilities (machines/equipments/vehicles) / Modal adalah nilai bersih syarikat yang wujud dalam bentuk wang tunai, inventori & kemudahan (mesin/peralatan/kenderaan) C. Capital is cash/facilities that are used to generate income/profit of a biz by way of investment Modal adalah tunai / kemudahan yang digunakan untuk menjana pendapatan / keuntungan biz dengan cara pelaburan D. Capital is only in the form of money/ Modal hanya dalam bentuk wang

Which of the statement is FALSE Yang mana satu penyataan adalah SALAH? Select one: A. Capital is to be used to further increase the value of the company/ Modal akan digunakan untuk meningkatkan lagi nilai syarikat B. Capital is the net value of a company that exists in the form of cash, inventories & facilities (machines/equipments/vehicles) / Modal adalah nilai bersih syarikat yang wujud dalam bentuk wang tunai, inventori & kemudahan (mesin/peralatan/kenderaan) C. Capital is cash/facilities that are used to generate income/profit of a biz by way of investment Modal adalah tunai / kemudahan yang digunakan untuk menjana pendapatan / keuntungan biz dengan cara pelaburan D. Capital is only in the form of money/ Modal hanya dalam bentuk wang

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

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Similar questions

Which of the following statements is correct? Select one: A. Working capital is the initial capital injected into a company. OB. Working capital is equal to the net investment in current assets and current liabilities. C. Working capital is the minimum amount of capital required to run a business. OD. Working capital is a source of long-term finance.
The cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnover
What is the primary purpose of computing the cost of capital? a. To determine the market value of the company's shares b. To assess the company's liquidity position c. To evaluate the profitability of investment projects d. To compare the company's performance with industry peers
Which of the following is a working capital management issue? O A. The choice of which long-term assets to purchase to meet the firm's business goals. O B. The appropriate amount of cash to hold. C. None of the above is a working capital management issue. O D. The proper mix of stocks and bonds to issue for financing assets.
Based on the Massy Group, an investment holding company, answer the following questions. Provide a detail explanation and examples to the answers. Assess the company’s working capital position by analyzing its current assets and liabilities using common methods and measures and perform a comparison/difference to that of another company. Evaluate the efficiency of the company’s working capital management strategies, including inventory management, accounts receivable, and accounts payable and perform a comparison/difference to that of another company. Based on the assessment and evaluation above, provide ten recommendations for improving the company’s working capital management practices, providing examples for each one.
Cost of capital refers to: a. The cost of borrowing money from financial institutions b. The cost of equity investments in the stock market c. The overall cost of financing a company's operations d. The cost of producing goods and services
a. What is meant by a company's cost of capital? b. Why is the company's cost of capital critical in the financial decisions that management must make?
Under capitalization of a business entity causes a. A situation when long term assets are financed form short term receivables b. A situation when current assets are financed from long term capital c. A situation when long term assets are financed from short term financial resources d. A situation when the respective business entity is spending more capital than it's able to hain
Required:1. How much is the net working capital of ABC Company?2. Is it positive or negative?
What is WACC (select all that are true)? Group of answer choices Rd (1-Tc) * D/V + Re * E/V Weighted Average Cost of Capital For a firm overall, it is based on the riskiness of the firm's assets While it is generally estimated by looking at the right-hand-side of the balance sheet, it is largely driven by the left-hand-side (i.e., assets) It is the amount that equity holders demand for an investment in a firm It is the amount that debt holders demand for a loan made to the firm
Which of the following statement is correct Select one: A . The capital structure of a company may comprise of Equity Share Capital, Preference Share Capital and Debentutes B . Capital structure is a method of analyzing and comparing substantial future investments and expenditures to determine which ones are most worthwhile C . working capital referring to the mix of different sources of long - term funds D .Capital expenditure decisions do not involve commitment of large sums of money E .None of the statement is correct
Multiple Choice Questions 1. The following statements are correct for the Economic Value Added (EVA), except, A. The most conventional way to determine the value of the asset is through its economic value added. B. Economic value Added (EVA) is a convenient metric in evaluating investment as it quickly measures the ability of the firm to support its cost of capital using its earnings C. EVA is the excess of the company’s equity after deducting the cost of capital. D. The general concept here is that higher EVA is better for the firm 2. Ernesto, Inc. has projected average earnings every year of P 100 million. Debt to Equity Ratio is 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of directors of the company decided to sell the company for P 1 Billion. Compute for the Economic Value Added. (EVA). A. 5 Million B. P 50 Million C. P 0 D. P 25 Million 3. SPRO Corp is planning to expand and new projects is expected to have an EVA of P200,000. The annual coast of…