When are lagged predictor variables most commonly used?
a. In a simple linear regression model.
b. In a time series regression model.
c. In a analysis of variance.
d. In an exponential model.
b
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Lott Bros Developers evaluates a great many small to medium size projects each year. Some are riskier than others. Lott Bros should probably
A) allow individual project managers to estimate their own discount rates. B) try to identify the specific funding sources for each project. C) use the company's overall WACC for all projects. D) spend a great deal of time and money to estimate discount rates for each project.
On October 1, 2012, Glover Company borrowed $200,000 on a two-year, 12% note, with interest and principal to be paid at maturity. How much interest expense will Glover report on its income statement for the year ending December 31, 2012?
A) $ 6,000 B) $18,000 C) $24,000 D) $12,000