Match the Term on the Left to Its Description on the Right

question 126

Multiple Choice

Match the term on the left to its description on the right.
-Maintenance

• A)identifying or problems or opportunities
• B)includes prototyping
• C)monitoring and evaluating new system
• D)scheduling, purchasing, documenting, programming, and testing
• E)training and system conversion
• F)end product is a functional requirements report
• G)phasing out of system

Differentiate between book value and market value and understand the relevance of each in calculating WACC.

Analyze capital structure using market values to calculate the firm's WACC.

Understand the concept of marginal cost of capital (MCC) and its implications for capital budgeting.

Explain the importance of flotation costs and their impact on capital component costs and WACC.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market price.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Opportunity Cost

The relinquishment of possible advantages from alternate options upon making a choice.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, measured by the area above the supply curve and below the price level.