According to the signaling theory to explain differences in firms' capital structures, if a firm raises new capital by issuing debt rather than by issuing stock, it is a signal that the firm has very good future prospects.
Answer the following statement true (T) or false (F)
True
A firm with very favorable prospects will try to avoid selling stock, which will dilute ownership, and, rather, will raise any required new capital by other means, including using debt beyond the normal target capital structure. See 12-5: Capital Structure Theory
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Arguments for U.S. trade restrictions include all of the following except
a. job protection. b. infant industry support. c. maintenance of domestic living standard. d. improving incomes for developing countries.
The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale
Indicate whether the statement is true or false
John writes a check for $100 on his account at the Sacred Heart Bank to repay the $100 he owes Perry. He gives the check to Eliot and tells her to hand it over to Perry. However, Eliot loses the check before she can give it to Perry
Later, John realizes that he had not written Perry's name on the lost check. According to the provisions of the Uniform Commercial Code (UCC), on which of the following parties should the risk of loss of the check be placed? A) Eliot B) Perry C) John D) Sacred Heart Bank
The four usual methods of fixing value when a small business is being sold are by an expert
appraisal, a fixed priced formula, arbitration and a shotgun clause. Indicate whether the statement is true or false