Given the Role of the Finance Manager Is to Maximise

question 26

Multiple Choice

Given the role of the finance manager is to maximise the value of their company,when calculating a WACC the finance manager should focus on which of the following?

• A)Before- corporate tax returns
• B)After- personal tax returns
• C)After- corporate tax returns
• D)Any of the above-it makes no difference to company value.

Learn to calculate and interpret the degree of operating leverage.

Apply concepts of break-even and profitability analysis to decision-making, including special orders.

Understand the impact of variable and fixed costs on company profits and break-even point.

Learn to analyze the effects of cost structure on business risk and income variability.

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Definitions:

Service Learning

A teaching and learning strategy that integrates meaningful community service with instruction and reflection to enrich the learning experience, teach civic responsibility, and strengthen communities.

Corporation

A legal entity created under state law that is separate from its shareholders and has its own rights and liabilities.

National

Pertaining to or characteristic of a nation; relating to a country or its citizens.

Community Service

Voluntary work intended to help people in a particular area, often organized through groups, schools, or non-profit organizations to support the community.