If ending inventory is understated by $8,000 in 20X3, and assuming a constant 30% tax rate, then what will be the effect on retained earnings on December 31, 20X4?
A) The 20X4 ending retained earnings will be understated by $2,400.
B) The 20X4 ending retained earnings will be overstated by $2,400.
C) The 20X4 ending retained earnings will be understated by $5,600.
D) The 20X4 ending retained earnings will be overstated by $5,600.
E) The 20X4 ending retained earnings will not be understated or overstated.
E
Business
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The expected return on Kiwi Computers stock is 16.6 percent. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, then what is Kiwi's beta?
A) 1.26 B) 2.10 C) 2.80 D) 3.15
Business
Net present value is defined as the difference between the present value of the investment's net cash inflows and the investment's initial cost
Indicate whether the statement is true or false
Business