Under normal circumstances, the weighted average cost of capital (WACC) is used as the firm's required rate of return because:
A. as long as the firm's investments earn returns greater than its WACC, the value of the firm will not decrease.
B. any returns less than the WACC will cover the fixed costs associated with the capital and provide excess returns to the firm's stockholders.
C. it is the average of all the interest rates on the firm's existing debt.
D. it is an indication of the returns the firm expects to earn in the future from investing in capital budgeting projects.
E. it represents the average return the firm currently earns on the funds it has invested in assets.
Answer: A
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Dover Enterprises has two products, Chalk V and Alabaster X, that come from a joint process, blending. Alabaster X undergoes additional curing after the split-off before it can be sold. The entry to account for the movement of products from the blending department is:
a. Debit - Finished Goods Credit - Work in Process - Blending b. Debit - Finished Goods Debit - Work in Process - Curing Credit - Work in Process - Blending c. Debit - Work in Process - Curing Credit - Work in Process - Blending d. Debit - Work in Process - Curing Credit - Factory Overhead
Medium sized service desks typically take on most of the characteristics of large service desks.
Answer the following statement true (T) or false (F)
Which of the following is the focus of the final step in a typical brand tracking model?
A) brand personality B) brand attributes C) brand recognition D) media recognition E) media footprint
How are notes valued and accounted for under the authoritative guidance?