Which of the Following Procedures and Methods Are Important in Assessing

question 11

Multiple Choice

Which of the following procedures and methods are important in assessing a company's ability to continue as a going concern?

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Definitions:

Par Bonds

Bonds that are issued and redeemed at their face value, or par value, which represents the nominal or dollar value printed on the bond.

Expected Perpetual EBIT

The forecasted continuous earnings before interest and taxes that a company expects to generate over an indefinite future period, assuming a steady state of operations.

Unlevered Cost of Capital

The cost of capital for a company that has no debt, representing its cost of equity.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment.