The difference between a department's net sales and cost of goods sold is known as the
a. departmental gross profit; b. departmental operating
expense; c. departmental operating income; d. departmental direct
operating margin; e. departmental net income
A
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The 2 + 2 = 4 approach
A) generally works only with lengthy, non-routine reports. B) convinces the reader by demonstrating that everything adds up. C) is far more complicated than any other organizational strategy. D) is the only approach that is appropriate for any business report. E) works best if the reader is likely to accept the argument.
Fraud statistics cited in the text indicate that the CEO participates in approximately 95 percent of financial statement frauds
Indicate whether the statement is true or false
The president and CFO of Spellman Transportation are having a disagreement about whether to use market value or book value weights in calculating the WACC. Spellman's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 25%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?
A. 1.42% B. 1.57% C. 1.75% D. 1.94% E. 2.16%
“What problem is being solved?” is a key question to ask when determining the ______ of your TRIM framework.
a. Team b. Resources c. Idea d. Market