The WACC is determined by expected future costs, not by past or historical costs.
a) True
b) False
True
WACC is based on new or expected future cost and not on past or
historical cost
The WACC is determined by expected future costs, not by past or historical costs. a) True...
1(a.) (TRUE or FALSE?) We mark it up the value of a future promised or expected cash payment because it is worth more if the same amount of money is to be received later rather than now. 1(b). (TRUE or FALSE?) Money expected or promised in the future is worth less than the same amount of money in hand today. 1(c). (TRUE or FALSE?) The payments of an amortized loan reflect a decreasing amount going toward principal and an increasing...
flotation costs should be included in the calculation of the Weighted Average Cost of Capital (WACC). True or False
True or False: Future costs that do not differ between the alternatives are never relevant in a decision.
Life insurance policy reserves are the estimated current worth of expected future payouts. true or false?
Resources controlled as a result of past transactions that are expected to provide future benefits are referred to as: equity assets. liabilities.
Leverage is the ability to generate cash to pay bills. True False Historical analysis takes into account past precedents established in the organization. True False The vision must be measured quantitatively. True False Leadership style is based on recurrent behavior. True False Maslow’s hierarchy of needs refers to meeting only physiological needs. True False Stress can be viewed as either positive or negative. True False Part of improving communication is underscoring mutual benefit. True False Negotiating is a process of...
Please answer these questions: The future value of a single sum is determined by multiplying the future value factor by its present value. True or False. In all cases when FIFO is used, the cost of goods sold would be the same whether a perpetual or periodic system is used. True or False. Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset. True or False. The...
19. Past relationships between cost and activity may not be a useful basis for estimating future costs A) if most of a company's costs are variable. B) if the cost is a mixed cost. C) if future activity levels are expected to be beyond the relevant range. D) the company is able to accurately estimate its cost behavior.
True or false and why? 1. Other things held constant, a decrease in a firm’s marginal tax rate would lower the cost of debt when calculate its WACC. 2. The component costs of capital are market-determined variables in the sense that they are based on investors’ expected returns.
Credit risk impacts WACC: True / False