Accounting Information Systems (13th Edition)
13th Edition
ISBN: 9780133428537
Author: Marshall B. Romney, Paul J. Steinbart
Publisher: PEARSON
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Question
Chapter 8, Problem 1CQ
To determine
Identify the true statement.
Expert Solution & Answer
Answer to Problem 1CQ
Option b
Explanation of Solution
Justification for correct answer:
Option (b):
The information security is required to protect privacy, confidentiality integrity and available information resources. Therefore, Option b, is the correct answer.
Justification for incorrect answer:
Option (a):
The defense in depth concept states with enough given time any control can be overcome. Therefore, Option a, is an incorrect answer.
Option (c):
The correct formula is
Option (d):
The security is a managerial issue. Therefore, Option d, is an incorrect answer.
Conclusion
Therefore, Option (b) is the correct answer.
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1. I want to know how to solve these 2 questions and what the answers are 3. Field & Co. expects its EBIT to be $125,000 every year forever. The firm can borrow at 7%. The company currently has no debt, and its cost of equity is 12%. If the tax rate is 24%, what is the value of the firm? What will the value be if the company borrows $205,000 and uses the proceeds to purchase shares?
2. Firms HD and LD each have $30m in invested capital, $8m of EBIT, and a tax rate of 25%. Firm HD has a D/E ratio of 50% with an interest rate of 8% on their debt. Firm LD has a debt-to-capital ratio of 30%, however, pays 9% interest on its debt. Calculate the following:
a. Return on invested capital for firm LDb. Return on equity for each firmc. If HD’s CFO is thinking of lowering the D/E from 50% to 40%, which will lower their interest rate further from 8% to 7%, calculate the new ROE for firm HD.
Chapter 8 Solutions
Accounting Information Systems (13th Edition)
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