Bender Day 10 Flashcards

1
Q

Name external factors that directly affect the competitive environment of a firm?

A
  1. Existence of substitutes
  2. Bargaining power of suppliers
  3. Barriers to market entry

note: political issues are external factors to the overall industry, not just one firm

MCQ-04066

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2
Q

What is true assuming the demand for a product is price elastic?

A

An increase in price will result in a decline in total revenue

when demand is price elastic, an increase in price will result in a decline in quantity demanded that is proportionately larger than the increase in price

MCQ-03515

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3
Q

How do you calculate interest payable with a $3 million bonds with a face value of $10k and a coupon rate of 9% and the effective interest rate of 8%

A

Bond × Coupon rate

MCQ-15779

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4
Q

High Low method

A

MCQ-07723

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5
Q

In a regression analysis, the coefficient of determination measures:

A

Goodness of fit

Measures the proportion of the total variation in the dependent variable (y) explained by the independent variable (x)

MCQ-04344

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6
Q

What is not supporting documentation for an IT Security Policy?

A

Vision Stmt

MCQ-14596

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7
Q

If tax rates are expected to decrease, the WACC will:

A

Increase, bc the after tax cost of debt will decrease

MCQ-07791

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