70.2K
Verified Solution
Link Copied!
Which of the following statements is false?
Select one:
a. Excess capacity increases AFN.
b. Economies of scale lead to less-than-proportional asset increases.
c. Lumpy assets lead to large periodic AFN requirements, recurring excess capacity.
d. Accounts payable, accruals, and deferred taxes are not included in the calculation of the cost of capital.
e. In the calculation of the cost of capital, the after-tax cost of capital should be used.
In the forecasted financial statements (FFS) method, which of the following items is not forecasted by the percent of forecasted sales?
Select one:
a. Accruals
b. Account receivable
c. Common stock
d. Cash
e. Inventory
Answer & Explanation
Solved by verified expert
