What is a leveraged buyout?
What will be an ideal response?
Answer: In a leveraged buyout, a firm takes on sometimes huge debt to buy out other companies. If owning the purchased company generates profits above the cost of borrowing the purchase price, leveraging often makes sense. Unfortunately, many buyouts have caused problems because profits fell short of expected levels or because rising interest rates increased payments on the buyer's debt.
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What inventories are included in determining total manufacturing costs?
A) Beginning and ending finished goods B) Beginning and ending raw materials C) Beginning and ending work-in-process D) None of the above answers is correct.
On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?
a. Low end of the range. b. High end of the range. c. Midpoint of the range. d. IFRS presents no specific guidance as to this point.