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The IMA Code of Ethics describes three basic steps a cost accountant should take when faced with an ethical conflict: Discuss,clarify,consult.Describe each of these three steps.
Cost of Capital
The mandatory rate of gain a business must realize on its investment schemes to maintain its market identity and attract funds.
Return on Equity
A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently equity is used to generate profits.
Capital Employed
The total amount of capital used for the acquisition of profits by a firm or project, typically represented by the value of all assets minus current liabilities.
Financial Leverage
The use of borrowed funds to increase the potential return on investment, often measured by the ratio of a company’s debt to equity.
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