Assume an investor company purchased a controlling financial interest in 100% of the outstanding voting common stock of an investee. Which of the following statements is false about the investor's pre-consolidation bookkeeping and/or the post-consolidation financial reporting in the investor's published financial statements? a. The investor company can make an irrevocable election to report the Equity Investment at a fair value, even if the investor has control over the investee.
b. If the investor applies equity method, the balance of the pre-consolidation investment in investee account will equal 100% of the investee's stockholders' equity, adjusted for 100% of the unamortized differences between the investee's net fair values and book values (ie., for gross difference initially determined as of the date of investment in the investee)
c. In its pre-consolidation accounting records, the investor can use any investment-accounting method it chooses.
d. In its published financial statements, the investor must consolidate the investee.

Acompany factory is considered which type of resource a. land b. physical capital c. labor d. human capital

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product