Question
According to the Net Income Approach, what happens to
the firm’s value as debt increases?Solution
Under the Net Income Approach, use of cheaper debt increases firm value by lowering the WACC.
At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is
A company purchased machinery worth ₹50,00,000 on 01-04-2021. The company provides depreciation at 10% per annum on Written Down Value method. On 01-1...
In relation to Employee Stock Option Plans, which of the following statements are correct?
(i) Employee Stock Option Plans are increasingly being...
Project A has cash flows of ₹-10 lakh (initial), ₹3L, ₹4L, ₹5L over 3 years. Project B has the same initial investment but generates ₹6L, ₹4...
The DuPont Analysis uses the following ratios except:
A non-life insurer has a motor insurance portfolio showing increasing loss ratios for three consecutive quarters, rising from 72% to 91%. What internal ...
Depreciation is generally provided on:
Which of the following websites does not facilitate e-commerce?
Which ICDS deals with Accounting Policies?
The purpose of preparing final accounts is to ascertain         .
