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Author Question: When compared to a risk averter, a risk seeker will accept identical risks for A) a smaller ... (Read 80 times)

elizabeth18

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on: Jul 10, 2018
When compared to a risk averter, a risk seeker will accept identical risks for
 
  A)
 
  a smaller additional return
  B)
 
  a larger additional return.
  C)
 
  similar current returns.
  D)
 
  no additional return.

Question 2

The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes. Next, interest expense is subtracted to find the ________ for the period.
 
  A) EBIT
  B) after-tax income
  C) net income
  D) taxable income


kristenb95

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: D
Explanation: D) The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes (EBIT). Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted. We finally arrive at the net income, the so-called bottom line of the income statement.


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