1
Q
Should return on investment be larger than or less than the cost of capital? Why?
A
The reason why is because it would not make sense to invest in something that will give you a lower return than how much you have to pay in interest
2
Q
Why is debt cheaper than equity?
A
Debt is tax-deductible
3
Q
PPE
A
Property, plant, and equipment
4
Q
What was GE’s return on investment and cost of capital
A
Roi = 6%
CoC = 8%
Financial Statement Analysis
flashcards
Decks in class (20)
# Cards
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Week 132
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Week 2: Statement of Cash Flow10
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Week 2: Entity Structures10
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Week 2: Factoids4
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Week 2: The Statement of Change in Stockholder's Equity7
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Week 2: Income Statement10
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Week 2: How the Financial Statements Relate to One Another3
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Week 3: Factoids12
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Week 3: Journal Entries5
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Week 3: Inventories7
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Week 3: General Financial Statements32
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Week 3: Fair value vs cost4
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Week 4: R&D6
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Week 4: Revenue Recognition6
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Week 4: Adjusting Journal Entries5
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Week 4: General17
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Week 6: Ratios and etc.30
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Week 510
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Week 726
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Week 820
