The cost of debt is equal to one minus the marginal tax rate multiplied by the interest rate on new debt.
Answer the following statement true (T) or false (F)
True
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Funds raised from operating activities should be invested in assets that can be used to carry on business operations
a. True b. False Indicate whether the statement is true or false
According to the AICPA, which of the following is not a safeguard to the auditing profession?
a. Education. b. Professional standards. c. External reviews. d. Legislation concerning competency requirements.
Answer the following statements true (T) or false (F)
1) When a company is evaluating an investment proposal with high risk, a low discount rate should be used. 2) When the internal rate of return is the same as the required rate of return, the net present value of an investment will be positive. 3) The internal rate of return (IRR) is the rate of return, based on discounted cash flows, of a capital investment. 4) If an investment's internal rate of return is higher than the required rate of return, the company should reject the investment. 5) The discounted cash flow methods of evaluating capital investments are superior because they consider both the time value of money and the profitability of the investment.
The social forces of the environment include the demographic characteristics of the population and its ________.
A. social classes B. ethics C. culture D. geographic locations E. cohorts