The appropriate discount rate to use when analyzing a refunding decision is the after-tax cost of new debt, in part because there is relatively little risk of not realizing the interest savings.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Express the following balance sheets for Safety Company in common-size percentages.Safety CompanyBalance SheetsFor the years ended December 31?Year 2Year 1Assets??Cash$ 43,000$ 22,000Accounts receivable38,00042,000Merchandise inventory61,00052,000Prepaid insurance6,0009,000Long-term investments49,00020,000Plant assets (net)218,000218,000Total assets$415,000$363,000???Liabilities and Equity??Current liabilities$ 62,000$ 75,000Long-term liabilities45,00036,000Common stock150,000150,000Retained earnings 158,000 102,000Total liabilities and equity$415,000$363,000
What will be an ideal response?
Due to demands for increased accountability, advertising professionals continue to use copytesting, even though they may not believe it is an effective method for evaluating ads
Indicate whether the statement is true or false
A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:
A. $45,000. B. $50,000. C. $35,000. D. $5,000. E. $0.
Which board type becomes actively involved in all major decisions of the firm and meets frequently and focuses intensely on all issues on the agenda at the board meetings?
a. Intervening board b. Passive board c. Certifying board d. Operating board