The tradeoff theory of optimal capital structure weighs the benefits of debt against the costs of ________
A) financial distress
B) interest payments
C) dividend reinvestment
D) input factors
Answer: A
You might also like to view...
The Securities Exchange Act of 1934 established extensive reporting requirements for listed companies. Which is not a commonly required report?
A) Form 10-Q. An extensive quarterly report, including financial statements. B) Form S-2. A registration statement C) Form 10-K. An extensive annual report, including financial statements D) Form 8-K. A report used to describe significant events that may affect the company.
What is one of the biggest marketing campaigns of illegal MLMs?
a. Promise of full-time work from home for huge weekly earnings. b. Absence of headhunter fees. c. A mysterious "benefactor" interested in contributing a large sum of money. d. Promise that investors will always make money from future downline growth.
On March 1, 2018, Everson Services issued a 4% long-term notes payable for $16,000. It is payable over a 4-year term in $4000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2019. Each yearly installment will include both principal repayment of $4000 and interest payment for the preceding one-year period. On March 1, 2019, ________. The accounting period ends on December 31.
A) Everson must accrue $4000 of Interest Expense B) Everson must accrue the next note payment of $4000 as the current portion of principal payment C) Everson must pay $640 of interest to the note holder D) Everson will receive $4000 as an installment payment
It is realistic to assume that a total revenue line will curve rather than be straight
Indicate whether the statement is true or false