In general, a successful firm will have a market-to-book ratio that is substantially greater than 1
Indicate whether this statement is true or false.
Answer: TRUE
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According to the Clean Water Act, anyone who discharges wastewater other than just domestic sewage to a publicly owned treatment works (POTW) must obtain an industrial discharge permit from the Environmental Protection Agency (EPA).
Answer the following statement true (T) or false (F)
Hilliard Company, a small consulting firm, charges all of its operating expenses on Accounts Payable. On January 1, Year 2, Hilliard's Accounts Payable balance was $26,500 and, during Year 2, an additional $137,000 of operating expenses were charged on account. On December 31, Year 2, the Accounts Payable balance was $57,300. What is the amount of cash paid for expenses during Year 2?
A. $167,800 B. $106,200 C. $163,500 D. $79,700
Unit cost per service is calculated by dividing total costs by the total number of services provided
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. The capital structure that minimizes a firm's weighted average cost of capital is also the capital structure that maximizes its stock price. B. The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share. C. If a firm finds that the cost of debt is less than the cost of equity, increasing its debt ratio must reduce its WACC. D. Other things held constant, if corporate tax rates declined, then the Modigliani-Miller tax-adjusted tradeoff theory would suggest that firms should increase their use of debt. E. A firm can use retained earnings without paying a flotation cost. Therefore, while the cost of retained earnings is not zero, its cost is generally lower than the after-tax cost of debt.