If the debt/assets ratio increases, the costs of both debt and equity normally decrease.
Answer the following statement true (T) or false (F)
False
As the debt/assets ratio increases, the costs of both debt and equity rise, and the increasing costs of the two components begin to offset the fact that larger amounts of the lower-cost debt are being used. See 12-2: Determining the Optimal Capital Structure
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When the Coca-Cola Company convened focus groups in Europe and Asia to assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect ________ data
A) primary B) secondary C) incipient D) quantitative E) MIS
A contract pledging title to assets as security for a note or bond is known as a(an):
A. Lease. B. Mortgage. C. Sinking fund. D. Indenture. E. Equity.
Delores Del Rio bought a packing machine for her business from Ace Machines and paid cash on delivery. Ace had previously given a chattel mortgage on the machine to the bank, which had registered it under the Personal Property Security Act
A bailiff tried to repossess the machine on behalf of the bank. Which of the following is TRUE? A) The chattel mortgage is not effective because Delores paid for the machine in full. B) The chattel mortgage is not effective because Delores did not know of it when she purchased the machine. C) The chattel mortgage is effective D) You cannot register a chattel mortgage under the PPSA E) Both A and B
The use of the qualifying word(s) ____ is/are understood to place purchasers on notice that they may not rely on the credit of the person using the language
A) "accepted" B) "certified" C) "without recourse" D) "insufficient funds"