When corporate taxes and the cost of financial distress are taken into consideration, the market value of a firm is equal to the value of the all-equity firm ________ the PV of the tax shield ________ the costs of financial distress.
A. plus; minus
B. plus; plus
C. minus; plus
D. minus; minus
Answer: A
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What will be an ideal response?
The cost of replacing minor parts, conducting normal maintenance, and cleaning are debited to the ____________________ account
Fill in the blank(s) with correct word
Which of the following is true of the value-in-use pricing method?
A) The product price is set to provide customers with an attractive savings after considering the life-cycle costs of the product. B) The cost of making a product and the desired profit margin are the two primary determinants in setting a value-in-use price. C) Price is set by unbundling a product's features, placing a price on each, and then allowing customers to select the features they want at a price that they are willing to pay. D) It considers neither what the buyer would be willing to pay for product performance nor the cost of other similar products in the market. E) Price is set on the basis of the value that customers realize when they compare the price and benefits of the company's product with those of a key competitor's product.
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What will be an ideal response?