Why do we use market values rather than book values in calculation of WACC?
What will be an ideal response?
Answer: We use market values rather than book values because the cost of capital is based on investors' current assessment of the value of a firm and not on accounting-based book values.
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Elizabeth created a print ad in which the coach of a football team was shown standing out in the middle of a hay field. The text read, "UNR's Coach Roberts….outstanding in his field." Elizabeth was using a literary device called ________
A) metaphor B) simile C) allegory D) resonance
_______ group activities around similar products or services.
A. Output structures B. Matrix organizations C. Offering divisions D. Functional structures E. Product divisions
Lassen Corporation issued ten-year term bonds on January 1, 2010, with a face value of $800,000 . The face interest rate is 6 percent and interest is payable semi-annually on June 30 and December 31 . The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is to be used. The entry to be recorded on December 31, 2010, for the
payment of interest (rounded to the nearest dollar) and the amortization of discount is: a. Bond Interest Expense 3,638 Unamortized Bond Discount 3,638 b. Bond Interest Expense 27,784 Unamortized Bond Discount 3,784 Cash 24,000 c. Bond Interest Expense 27,784 Cash 27,784 d. Bond Interest Expense 24,000 Unamortized Bond Discount 24,000
Products are born, and then they grow up and become mature. In marketing, this process is known as the ________
Fill in the blanks with correct word