D ebit income taxes net - Study guides, Class notes & Summaries

1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected return on securities - b. Compensation for risk-taking 3. What is the relationship between risk and required return? a. The two are independent b. Higher required return causes lower risk c. Higher risk...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - ANSWER-F Stocks and bonds are two types of financial instruments (T/F) - ANSWER-T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large en...

How can you think about calculating combined equity value? - ANS if no Stock is used, Combined Equity Value = Company A's Equity Value. If it's a 100% Stock deal, Combined Equity Value = Company A's Equity Value + Company B's Purchase Equity Value. How can you think about calculating combined enterprise value? - ANS Combined Enterprise Value = Acquirer's Current Enterprise Value + Seller's Purchase Enterprise Value Equal to the Combined Equity Value, plus the Debt (and other Debt...

C214 Financial Management WGU Test Questions And Answers Net Income = - ANSWER Revenues - Expenses Revenues - Cost of Goods Sold (COGS) - ANSWER Gross Profit Gross Profit - Operating Expenses - ANSWER EBIT EBIT = - ANSWER Sales - Costs - Depreciation EBIT = - ANSWER Operating Profit or Operating Income EBIT - Interest Expense = - ANSWER Earnings Before Taxes Earnings before Taxes - Tax Expense = - ANSWER Net Income (NI) Retained Earnings...

C214 Financial Management Overview Concept Quiz Answers 1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk - ANS c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected return on securities - ANS b. Compensation for risk-taking 3. What is the relationship between risk and required return? a. The two ar...

TESTBANK FOR Corporate Finance, 3rd Edition by Jonathan Berk and Peter DeMarzo Corporate Finance, 3e (Berk/DeMarzo) Chapter 1 The Corporation 1.1 The Four Types of Firms 1) A sole proprietorship is owned by: A) one person. B) two of more persons. C) shareholders. D) bankers. Answer: A Diff: 1 Section: 1.1 The Four Types of Firms Skill: Definition 2) Which of the following organization forms for a business does NOT avoid double taxation? A) Limited partnership B) "C" corpora...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - F Stocks and bonds are two types of financial instruments (T/F) - T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large enough to match ...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - correct answer F Stocks and bonds are two types of financial instruments (T/F) - correct answer T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues sh...

WGU C214 CONCEPTS FINAL EXAM ACCOUNTING QUESTION AND ANSWERS 2024 100% Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) F Stocks and bonds are two types of financial instruments (T/F) T The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in...

Wall Street Prep Question and answers verified to pass Income Statement - correct answer Revenue -> Gross Profit -> EBIT -> Pretax Profit -> Net Income -> EBITDA -> Adjusted EBITDA Gross Profit - correct answer Revenue - COGS EBIT - correct answer [Revenue - COGS] - Operating Expenses - D&A Pretax Profit - correct answer [Revenue - COGS - Operating Expenses - D&A] + Interest Income - Interest Expense - Other Expense Net Income - correct answer [Reven...