If the Receipt of the Sale Proceeds on Disposal Is

question 22

True/False

If the receipt of the sale proceeds on disposal is deferred for a period of time the consideration received is recognised initially at the fair value.

Calculate geometric mean growth rate.

Analyze statistical data without a mode.

Understand and define the range in a data set.

Calculate mean age in a given data set.

---

Definitions:

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as interest on debt.

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

M&M Proposition II

Modigliani and Miller's Proposition II states that a company's cost of equity increases as it increases its leverage due to the risk premium on equity.

Debt-Equity Ratio

A financial ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.