solution - orders Correct Marks for this submission: 1/1....

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Question 1 Marks: 1 The reciprocal of the risk-adjusted equity cost of capital used is the Choose one answer. a. return on assets. b. return on common equity. c. price earnings ratio. d. profit margin on sales. Correct Marks for this submission: 1/1. Question 2 Marks: 1 A company has a beta risk of 1.2 and a market risk premium of 6%. With a 4% risk-free rate of return, what is the estimated cost of equity cost of capital for the company? Choose one answer. a. 10% b. 11.2% c. 6% d. 5% Correct Marks for this submission: 1/1. Question 3 Marks: 1 Perpetual inventory system offers all the following advantages except: Choose one answer. a. inventory balances are always current b. it is less expensive than a periodic system c. it enhances internal control d. it helps salespeople determine whether there is a sufficient supply of inventory on hand to fill customer
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Unformatted text preview: orders Correct Marks for this submission: 1/1. Question 4 Marks: 1 The Green Company reported merchandise inventory at LIFO of $450,000 on the year-end financial statements. The company also reported a LIFO reserve of $34,000. An estimate of the inventory balance if the inventory had been reported using the FIFO assumption is Choose one answer. a. $382,000. b. $416,000. c. $461,000. d. $484,000. Correct Marks for this submission: 1/1. Question 5 Marks: 1 The Wilson Corporation reported at the end of the year a LIFO reserve of $25,000. The beginning LIFO reserve was $20,000. The cost of goods sold was $197,500 under LIFO. The cost of goods sold under FIFO should be Choose one answer. a. $192,500. b. $197,500. c. $202,500. d. $222,500. Correct Marks for this submission: 1/1....
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This note was uploaded on 10/01/2011 for the course ACCT 303 taught by Professor Staff during the Spring '11 term at S.F. State.

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solution - orders Correct Marks for this submission: 1/1....

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