When Using Equity Financing, Firms Run the Risk of ________

question 38

Multiple Choice

When using equity financing, firms run the risk of ________.

• A) diluting the firm's ownership
• B) regular monthly payments of principal and interest
• C) incurring a high debt ratio
• D) severe penalties for late or missed payments of interest

Calculate cost of goods sold and ending inventory using different inventory costing methods.

Identify the impacts of choosing different inventory valuation methods on financial statements.

Understand and calculate the effects of inventory transactions on the cost per unit using the moving average method.

Identify and analyze the advantages and disadvantages of LIFO and FIFO inventory methods.

---

Definitions:

Red blood cells

The cells in blood responsible for carrying oxygen from the lungs to the rest of the body and returning carbon dioxide to be exhaled.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Kidney failure

A medical condition where the kidneys lose the ability to adequately remove waste and excess fluids from the blood to be excreted in urine.

Erythrocyte count

The numerical measurement of red blood cells in a given volume of blood, important for diagnosing various health conditions.