FSA TRIAL #1

A. What’s the IT in EBITDA?

• Interest, Tax

• Income, Tax

• Interest, Tax rate

• Income, Tax rate

When can Agency cost happen?

• Shareholders-Debtholders

• Management-Debtholders

• Management-Shareholders

• Agent-Principal

How to calculate rate per kwh:

Rate = ? / estimated total kwh

• Allowed revenue

• Allowed profit

• Allowed cost

• Allowed return on capital

If cost is lower than market value, Inventory should recorded at?

• cost

• market value

From this table, do you think that Magee should approve the bonus payment?

• yes

• no

Should management be given a bonus percentage way above the market average?

• yes

• no