Bender Day 10 Flashcards
Name external factors that directly affect the competitive environment of a firm?
- Existence of substitutes
- Bargaining power of suppliers
- Barriers to market entry
note: political issues are external factors to the overall industry, not just one firm
MCQ-04066
What is true assuming the demand for a product is price elastic?
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
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%
Bond × Coupon rate
MCQ-15779
High Low method
MCQ-07723
In a regression analysis, the coefficient of determination measures:
Goodness of fit
Measures the proportion of the total variation in the dependent variable (y) explained by the independent variable (x)
MCQ-04344
What is not supporting documentation for an IT Security Policy?
Vision Stmt
MCQ-14596
If tax rates are expected to decrease, the WACC will:
Increase, bc the after tax cost of debt will decrease
MCQ-07791