Which of the Following Standards Is Generally Used in Determining

question 15

Multiple Choice

Which of the following standards is generally used in determining whether personal property has become a fixture?

• A) whether the personal property has been attached to the real property
• B) whether the personal property is used in the same manner as the real property
• C) whether the personal property can be removed without damaging the real property
• D) whether the item was attached before or after the party acquired the real property
• E) whether the personal property adds to the value of the real property

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Definitions:

WACC

Abbreviation for Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, reflecting the cost of each type of capital (debt, equity, etc.) to the overall business.

Debt-Equity Ratio

A financial benchmark illustrating the ratio of debt to equity used in asset financing for a company.

Tax Rate

The tax obligation calculated as a percentage of income for private individuals or companies.

Net Present Value

A calculation used to determine the value of an investment by estimating future cash flows and discounting them to their present value.