A firm's value-to-book and market-to-book ratios may differ from one for a number of reasons. Discuss how a successful internally funded research and development program would create a situation where the value-to-book and market-to-book ratios differ from one
Because research and development activities are expensed when incurred under U.S. GAAP, a successful program would lead to a high amount of off-balance-sheet assets and off-balance-sheet common shareholders' equity. The off-balance-sheet assets generate income, however the shareholders' equity is understated, so ROCE will be relatively high.
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Don't ________ in the closing section of a business report
A) summarize the key points B) introduce new material to expand the scope C) list all of the action items D) present the benefits of following the recommendations E) present the benefits of key ideas
When comparing several investments with the same initial cost, the decision should be made on the basis of the ________
A) highest total cash inflows B) longest payback period C) highest NPV D) highest ARR
Persons or organizations that purchase and use a company's products and services are called
A. important customers. B. external customers. C. participating customers. D. internal customers.
Data management belongs to the ________
A) problem space B) outer space C) data space D) solution space