Acf Study guides, Revision notes & Summaries

If we use a single cost of capital to evaluate projects through the organization, what happens to risky and safer projects? correct answer: For riskier projects, you overvalue them and the firm because the risk isn't comparable and vice versa for safer projects When comparing across firms, how can we compare risk? correct answer: We have to use Ra or beta_a of projects with similar assets R_a comparison EQ correct answer: (D/A) x R_d + (E/A) * R_E How does the unlevered value of a f...

ACF Pratice Test questions

ACF- Question and answers 100% correct 2023/2024Firms can repurchase shares in the following ways: I) open market repurchase;II) tender offer;III) Dutch auction;IV) direct negotiation with a major shareholder - correct answer I, II, III, and IV Company X has 100 shares outstanding. It earns $1,000 per year and expects to pay all of it as dividends. If the firm expects to maintain this dividend forever, calculate the stock price today. (The required rate of return is 10 percent.) - correct ...

ACF

Stages in audit process correct answer: 1. Understand clients operations 2. Assess risk exposure 3. Understand controls 4. Compliance and minimal substantive testing if controls trusted, Extensive substantive if cant be trusted 5. Financial statement analytical review 6. Overall audit assessment 7. Audit opinion and report What is the equation for audit risk correct answer: Audit risk = Detection x Control x Inherent Detection risk - Auditor wrong Inherent risk - Ca...

ACF Question and answers 2023/2024 verified to pass If a firm wants to increase its share price, it must cut its dividend and invest more. - correct answer False A firm can increase its growth rate by retaining more of its earnings. - correct answer True If the firm retains more earnings, it will be able to pay out less of those earnings, which means that the firm will have to increase its dividend. - correct answer False Cutting the firm's dividend to increase investment will raise t...

ACF #1 Question and answers already passed 2023/2024The Law of One Price states... - correct answer that we can use market prices to determine the value of an investment opportunity to the firm Sole Proprietorship: As soon as the firm reaches point where it can borrow w/o owner being personally liable... - correct answer owners typically convert business into a form that limits liability Corporate governance - correct answer 1. shareholders elect board of directors 2. board makes rules, p...

ACF - Capital Structure

foodborne illness correct answer: a disease transmitted to people by food contamination correct answer: the presence of unsafe substances or levels of dangerous micro-organisms in food sanitation correct answer: the creation and practice of clean and healthy food-handling habits biological hazard correct answer: harmful organisms that cause foodborne illness potentially hazardous food correct answer: milk and milk products, meat: beef, pork, lamb, eggs, raw sprouts and seeds, sh...

ACF Written Test