Question
When computing for book value, which of the following items should be deducted the asset value? * Total Liabilities Total Shareholders Equity Long term debt
When computing for book value, which of the following items should be deducted the asset value? *
Total Liabilities
Total Shareholders Equity
Long term debt only
Ordinary share capital
The three elements needed to estimate the cost of equity capital for use in determining a firm's weighted-average cost of capital are *
Current dividends per share, expected growth rate in dividends per share, and current book value per share of common stock.
Current earnings per share, expected growth rate in earnings per share, and current book value per share of common stock.
Current earnings per share, expected growth rate in dividends per share, and current market price per share of common stock.
Current dividends per share, expected growth rate in dividends per share, and current market price per share of common stock.
These are situation that most likely consider liquidation value, except *
Business Failures
Divestment
Corporate End of Life
Depletion of scarce resources
___________ represents the net amount that can be gathered if the business is shut down and its assets are sold piecemeal *
Going concern value
Liquidation Value
Bankruptcy value
Closing Value
The _______________ is also known as income-based valuation approach *
Earnings approach
Market approach
Asset-based approach
Going concern approach
The _________ of accounting means that the financial statements are prepared where income and expenses must be recognized in the accounting periods to which these are incurred. *
accrual basis
deferral basis
cash basis
none of the above
The following methods shows the most recent value of the firm assets in the market as of the valuation date, except *
Replacement value method
Liquidation value method
Reproduction Value Method
Book Value Method
When computing for book value, which of the following items should be deducted the asset value? *
Total Liabilities
Total Shareholders Equity
Long term debt only
Ordinary share capital
The factor that affects the replacement value of an asset are the following except *
Competitive advantage of the asset
Size of the asset
Original acquisition cost of the asset
Asset age
The ______________ can be computed primarily by getting the weight of cost of sources of fund, through _________ and ____________. *
Cost of equity, weighted average cost of capital, capital asset pricing model
Cost of equity, average cost of capital, capital asset pricing model
Cost of capital, weighted average cost of capital, capital asset pricing model
Cost of capital, average cost of capital, capital asset pricing model
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