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BEC Practice Questions for CPA Exam

1. Which of the following Is another name for hurdle rate?
a. internal return rate
b. desired returned
c. yield
d. None of the above is correct
I would said that the answer here is D. none - The rate of return or discount rate is often referred as the hurdle rate.

2. Which of the following techniques requires you to look for a rate of return?
a. internal rate of return
b. net present value
c. payback
d. none of the above is correct
I would say that the answer is A

3. Which of the following is not a potential problem with Just In Time (JIT)
a. difficulty finding dependable vendors
b. higher cost due to making smaller orders
c. potential delays in receiving orders
d. all of the above are potential problems with using JIT
I would say the answer is b

4. Which method is used to price common stock
a. dividend rate plus growth rate
b. CAPM
c. arbitrage pricing model
d. all of the above are methods to price common stock
I would say that the answer is d

Thank you

Solution Preview

1. Which of the following Is another name for hurdle rate?
a. internal return rate
b. desired returned
c. yield
d. None of the above is correct
I would said that the answer here is D. none - The rate of return or discount rate is often referred as the hurdle rate. <-- correct. the hurdle rate is the same thing as the minimum required rate of return.

2. ...

Solution Summary

This solution provides the correct answers with explanations to the CPA exam practice questions for the BEC section presented.

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