1. The income statement:
ignores any income other than operating revenues.
measures performance for one specific day.
treats dividends paid as a cash expense.
excludes deferred tax expense.
includes noncash expenses.
2. The weighted average cost of capital is:
what it cost the company to raise capital in the past.
the average of the past costs of capital and the anticipated costs of capital.
the average cost of acquiring additional capital funds.
the marginal cost of acquiring additional capital funds.