Match Each of the Following Terms with Its Definition

question 161

Multiple Choice

Match each of the following terms with its definition.
-A benefit derived from the creation of an information system that can be measured in dollars and with certainty.

• A)intangible benefit
• B)intangible cost
• C)one-time cost
• D)recurring cost
• E)tangible benefit
• F)tangible cost

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Definitions:

Total Equity

Total equity refers to the amount of owner's interest in a company, calculated as the difference between total assets and total liabilities.

Unlevered Rate

The unlevered rate refers to the return on an investment or the cost of capital without considering the impact of financial leverage, representing the risk of an investment independent of its capital structure.

Cost of Debt

The actual rate at which a corporation incurs cost on its existing financial obligations, such as bonds and loans.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess financial leverage.