13) What did Jim Brown at DuPont use to compare the efficiency of vastly different projects? Select an answer: operating efficiency return on investment sales profitability return on equity
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
13)
What did Jim Brown at DuPont use to compare the efficiency of vastly different projects?
Select an answer:
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operating efficiency
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return on investment
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sales profitability
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return on equity14)
Why would competitors want to see another company's financial statements?
Select an answer:
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to help determine the strengths and weaknesses of the company's finances
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to determine whether the company is eligible for a loan
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to decide whether or not to make an investment in the company's stock
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to provide background information on a competitor's market15)
What is the primary asset of any bank?
Select an answer:
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checking and savings accounts
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investments
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accounts receivable -
real estate
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