Answered: Which of the following is NOT one of… | bartleby

SWFT Comprehensive Volume 2019

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter11: Investor Losses

Section: Chapter Questions

Problem 26DQ

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s) Which of the following is NOT one of the benefits of leasing an asset from another company? ... O
Protection against obsolescence
O Complete financing
O Lower interest rates than normal debt
O Increased likelihood of sale

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___________ is the possible loss of revenue resulting mainly from a decline in the revenue base. Group of answer choices Investment risk Debt-related risk Revenue risk Insurance risk
Which of the following is probably a good reason for leasing instead of buying? None of these is good reason. O All of these are good reasons. O Leasing may reduce transactions costs. Taxes may be reduced by leasing. Leasing may provide a beneficial reduction of uncertainty.
1. Which of the following is not a reason for the issuance of long-term liabilities? a. Debt financing offers an income tax advantage.b. Ownership interest is diluted.c. Debt may be the only available source of funds.d. Debt financing may have a lower cost.
If debt creates additional expense without enough benefit through codt savings, income or capital gain, them it is not worth it True or false?
Which of the following is not a reason for the issuance of long-term liabilities? Debt financing dilutes ownership interest. Debt may be the only available source of funds. Debt financing may have a lower cost. Debt financing offers an income tax advantage.
Why is the acid test ratio a more rigorous test of short-term solvency than the current ratio? A. The quick ratio eliminates prepaid expenses for the denominator.B. The quick ratio eliminates prepaid expenses for the numerator.C. The quick ratio eliminates inventories from the numerator.D. The quick ratio considers only cash and marketable investments as current assets.E. The quick ratio eliminates revenue from the numerator.
What does it mean to adopt a maturity matching approach to financing assets, includingcurrent assets? How would a more aggressive or a more conservative approach differ fromthe maturity matching approach, and how would each affect expected profits and risk? Ingeneral, is one approach better than the others?
14.The loss of available-for-sale investment credit (AFS) cannot exceed the amount by which the fair value is less than the amortized cost. Select one: True False
If the accounting rate of return exceeds the required accounting rate of return, O A. invest in the capital asset. B. only invest if the payback period is also less than the required rate of return. O C. do not invest in the capital asset. OD. only invest if the payback period is also greater than the required rate of return.
Which of the following is not true? GAP analysis Ignores changes in the market value of assets and liabilities. GAP analysis Ignores time value of money. GAP analysis is easy to compute and can accurately predicts the exact losses or gains Gap analysis fails to capture non-interest revenue
True or False: When a company borrows money to finance the purchase of an asset to use in its business, one of their likely goals is to earn a rate of return on that asset which is lower than the interest rate on the loan borrowing. Select one: True False
Thinking about the definition of the term "flotation costs," should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not? how can the answer be supported.

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