All of the Following Items Would Be Reported as Other

question 155

Multiple Choice

All of the following items would be reported as other expenses and losses except

• A) freight-out.
• B) casualty losses.
• C) interest expense.
• D) loss from employees' strikes.

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Definitions:

Cost of Capital

The cost of capital is the rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Crossover Rate

The discount rate at which two projects have the same net present value (NPV), used in capital budgeting.

IRR

Internal Rate of Return, a financial metric used to assess the profitability of potential investments, measuring the discount rate at which the net present value of costs and benefits equal zero.

WACC

Stands for Weighted Average Cost of Capital, a calculation used to assess the cost of a company’s financing by averaging the cost of its equity and debt, weighted by their proportion in the company’s capital structure.