The cost of equity is: Capital growth Dividends Partly Dividends and Partly Capital Growth Question 2 Equity: Is the shareholders' investment Is the total of equipment owned by the company Is the total of the debt owed by the company None of the above An audit is a periodic examination of the accounting records to ensure that: The accounting records have been properly maintained The financial statements drawn up from the records do not contain any material misstatements. The financial statements and other financial information fairly present the company's financial position. All of the above.
Question 4 Which of the following represent the cost incurred by the organization to fund all of its investments: Equity Cost of Capital Dividends None of the above The cost of debt is: Dividends Equity Interest None of the above Question 6 Weighted Average Cost of Capital (WACC): Compares the dividends received by shareholders and the increase in the share price with the original shareholder investment Is the difference between total market capitalization and the total capital invested in the business by debt and equity providers Is the different costs of each form of capital, weighed by the proportions of different forms of debt and equity None of the above Question 7 Return on investment: Is the net profit after tax as a percentage of the shareholders' invetment in the business Is the shareholders' investment Is the total of the debt owed by the company Is the operating profit before interest and taxes as a percentage to the total share holders' equity plus the long-term debt of the business Question 8 Shareholders: Have limited liability Elect the directors Appoint the internal auditors All of the above The audit committee is appointed by: The external Auditor The CFO The Board of Directors The CEO Question 10 Internal controls are established to provide: Reasonable assurance of the safeguarding of assets against unauthorized use or disposition The maintenance of proper accounting records The reliability of financial information used within the business or for publication All of the above

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