Which of the Following Statements Is CORRECT

question 21

Multiple Choice

Which of the following statements is CORRECT?

• A) When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.
• B) Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process.
• C) For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.
• D) There are economies of scale in the use of many kinds of assets.When economies occur the ratios are likely to remain constant over time as the size of the firm increases.The Economic Ordering Quantity model for establishing inventory levels demonstrates this relationship.
• E) When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A₀*/S₀ and L₀*/S₀) vary from year to year in a stable, predictable manner.

Realize the impact of social interactions and interventions on reducing negative attitudes or stereotypes.

Understand the changing attitudes toward gender roles and discrimination.

Analyze the influence of social and physical differences on gender identity and relations.

Recognize the significance of gender socialization across different societal dimensions.

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Definitions:

Cost Of Capital

The rate of return that a business must achieve to generate value for its investors, essentially the cost of raising funds through debt or equity.

Dividend Growth Model

A method for determining the value of a stock by using predicted dividends and discounting them back to their present value.

Cost Of Equity

The return that equity investors require on their investment in the firm.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.