In a world with no taxes, Modigliani and Miller (MM) show that a firm's capital structure does not affect its value. However, when taxes are considered, MM show a positive relationship between debt and value, i.e., the firm's value rises as it uses more and more debt, other things held constant.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Mother's Company has current assets of $900,000 and current liabilities of $1,000,000 . Mother's Company's current ratio would be increased by
a. borrowing $100,000 on a line-of-credit (short-term loan). b. purchase of merchandise inventory costing $100,000 cash. c. purchase of marketable equity securities for $100,000 cash. d. paying $100,000 of wages payable. e. none of the above.
When there is a net loss, the Income Summary account would have a credit balance.
Answer the following statement true (T) or false (F)
Brad Pham works as a department manager in a computer products store. One particular fax machine sells for $212.40 . Management told Pham that the markup on this fax machine was 45% based on selling price. Calculate the cost of the machine
A _____ handles chargebacks and any other reconciliation items
a. front-end processor b. back-end processor c. clearing house d. payment gateway