What is a capital lease, in substance? How is a capital lease recorded? At what amount is a capital lease recorded?
A capital lease is, in substance, an installment purchase of an asset. The leased asset and the related lease liability are recorded at the present value of the lease payments.
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What is a drawback of a comparable-worth policy?
A. Raising pay for some jobs places the employer at a disadvantage relative to employers that pay the market rate. B. The courts prohibit organizations from defending themselves against claims of discrimination by showing that they pay the going market rate. C. Grouping jobs will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organization's job structure. D. A free-market economy assumes people will not take differences in pay into account when they choose a career. E. Employees may conclude that pay rates are unfair.
For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECT?
A. The interest rate used to calculate the WACC is the average after-tax cost of all the company's outstanding debt as shown on its balance sheet. B. The WACC is calculated on a before-tax basis. C. The WACC exceeds the cost of equity. D. The cost of equity is always equal to or greater than the cost of debt. E. The cost of retained earnings typically exceeds the cost of new common stock.
A typical involves changing some aspect the firm's internal corporate governance, such as the structure or composition of a firm's board of directors
a. proxy contest b. shareholder-initiated proposal c. initiation procedure d. takeover contest
Jurisdiction means the "authority of government" by a court
a. True b. False Indicate whether the statement is true or false