Which of the Following Statements Is Correct About Capital Assets

question 78

Multiple Choice

Which of the following statements is correct about capital assets?

• A)For managerial accounting purposes,"capital assets" are defined more narrowly than for financial accounting purposes.
• B)Human capital and research and development are both considered capital assets for financial accounting purposes,but not for managerial accounting purposes.
• C)Capital assets are only those that can be depreciated,whether using managerial or financial accounting.
• D)For managerial accounting purposes,"capital assets" are defined more broadly than for financial accounting purposes.

Calculate a firm's cost of capital considering both before and after a given breakpoint in the marginal cost of capital (MCC).

Assess the influence of growth rates in dividends on a firm's cost of equity.

Apply the concept of weighted average cost of capital (WACC) and understand its components and computation.

Understand how to calculate the weighted average cost of capital (WACC) and its components.

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