Describe some of the differences that the textbook mentions about ...

[Capo]

Describe some of the differences that the textbook mentions about yahoo.finance.com's presentation of the income statement.
 
  What will be an ideal response?

Question 2

Daniel Custom Cycles' common stock currently pays no dividends. The company plans to begin paying dividends beginning 3 years from today. The first dividend will be 3.00 and dividends will grow at 5 percent per year thereafter.
 
  Given a required return of 15 percent, what would you pay for the stock today?
  A) 25.33
  B) 18.73
  C) 29.86
  D) 22.68

[s.meritte]

Answer to Question 1

Answer: The presentation of the income statement at yahoo.finance.com mentions cost of revenue, not cost of goods sold. In addition, there is no mention of depreciation expense as it is contained in the cost of revenue section. yahoo.finance.com mentions other additional items such as minority interests, effect of accounting changes, and extraordinary items. Although these line items are included on all income statements at yahoo.finance.com, they may not be part of an individual company's income statement for that year.

Answer to Question 2

D