Pro forma financial information shows what the significant effects might have been had a consummated or proposed transaction or event occurred at an earlier date
a. True
b. False
Indicate whether the statement is true or false
True
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Blackrock Company received a 6-month, 15% note for $100,000 from its president on November 1, 2012. The note is due on April 30, 2013. If Blackrock's accounting period ends on December 31, how much interest revenue should Blackrock recognize during 2012 and 2013? 2012 2013
A) $5,000 $ 2,500 B) $2,500 $ 5,000 C) $ 0 $15,000 D) $ 0 $ 7,500
Which of the following statements is correct? Assume everything else equal.
A. Riskier assets always have higher market values. B. Riskier assets are more valuable than (preferred to) less risky assets. C. The sooner cash is received, the more valuable it is. D. Investors generally prefer short-term, high-risk assets investments. E. Investors generally receive higher returns on investments with low risk than investments with high risk.
Pricing strategies and methods
A. help direct and structure the selection of a final price. B. are the last decisions made for a new product. C. are the same for all of a company's products. D. are the most important decisions made for a product. E. require limited planning on the part of management.
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
A. A project's regular IRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC. B. A project's regular IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR. C. If a project's IRR is greater than the WACC, then its NPV must be negative. D. To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs. E. To find a project's IRR, we must find a discount rate that is equal to the WACC.