If an Event Is Considered to Change Assets, Liabilities, or Shareholders

question 107

Multiple Choice

If an event is considered to change assets, liabilities, or shareholders' equity with an appropriate monetary measure, then it is

• A)considered a financial changing event.
• B)listed on the U.S.stock exchange.
• C)considered a debt or payable of a company.
• D)recorded in the books of a company.

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Definitions:

IRR

Internal Rate of Return, a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost Of Capital

The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.

Capital Structure

The mix of different forms of capital used by a firm to finance its overall operations and growth, including debt, equity, and any hybrid securities.

Capital Components

The mix of debt, equity, and other financial instruments used by a company to fund its operations and growth.