A(n) ________ in the volatility of assets of the firm benefits ________ at a cost to debt holders
A) decrease, equity holders
B) increase, equity holders
C) decrease, directors
D) increase, directors
Answer: B
You might also like to view...
Which of the following is a fixed percentage of the value of an imported product as it enters the country?
a. specific tariff b. ad valorem tariff c. nominal tariff d. effective tariff
Call provisions on corporate bonds are generally included to protect the issuer against large increases in interest rates. They affect the actual maturity of the bond but not its price.?
Answer the following statement true (T) or false (F)
Raconteur Data Analysis Corporation in Seattle, Washington,offers a job to Trista, who lives in Utah. Tristaorally agrees to work for Raconteur for two years. She moves her family to Seattle and begins work. Three months later, she is fired for no
stated cause. She files a suit against Raconteur for rein-statement or pay. Raconteur pleads the lack of a written con¬tract. In whose favor is the court likely to rule, and why?
Sally goes away to college at 17, lives on her own, and pays her own rent and electric bills. If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract
Indicate whether the statement is true or false