Which of the following statements best describes predictive value?
A) Helps capital providers make decisions about future actions.
B) Provides all information necessary for a reliable decision.
C) Enables users to identify similarities and differences.
D) Enables users to comprehend the meaning of the information.
A
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Which three antecedent conditions have an impact on servant leadership?
A. context and culture, societal effect, follower receptivity B. follower receptivity, emotional healing, creating value for the community C. follower performance and growth, societal impact, behaving ethically D. context and culture, leader attributes, follower receptivity
Withdrawal from a partnership before the end of its express term constitutes a breach of the partnership agreement
Indicate whether the statement is true or false
The Cramden Bus Company is currently all equity financed, but it is considering a leveraged capital structure, the details of which are presented in the table under the column labeled 'Proposed'
Assume that the company generates perpetual annual EBIT. Assume that all cash flows occur at the end of the year and we are currently at the beginning of a year. Assume that taxes are zero. Assume that all of net income is paid out as a dividend. Assume that the debt is perpetual with annual coupons (and yield) of 4%. If Cramden recapitalizes, it will use the borrowed funds to repurchase (and cancel) shares. Determine both the value of the company and the value of the company's equity if it recapitalizes. Capital Structure Capital Structure Current Proposed EBIT $115,000 $115,000 Debt, D $0 $690,000 Cost of Debt, kd 4% Cost of Equity 5% A) Company value: $2,875,000; Equity value: $2,185,000 B) Company value: $2,875,000; Equity value: $2,875,000 C) Company value: $2,185,000; Equity value: $2,185,000 D) Company value: $2,300,000; Equity value: $1,610,000 E) Company value: $2,300,000; Equity value: $2,990,000
Which of the following term plans is intended to cover an individual's outstanding debt?
A) Renewable term B) Reentry term C) Credit life D) Mortgage life E) Both C and D above