The firm's target capital structure is consistent with which of the following?

a. Maximum earnings per share.
b. Minimum cost of debt (rd).
c. Minimum risk.
d. Minimum cost of equity (rs).
e. Minimum weighted average cost of capital.


e

Business

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Assuming taxes are a consideration, which of the following would not have an overall positive effect on cash inflows when a company is computing the net present value of a potential capital investment?

A) The asset's salvage value B) Cost savings per year C) Depreciation expense D) Initial capital investment

Business

Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organizing the games. Circus did not investigate Art's background, which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party. Circus Pizza

a. cannot be liable for the damages because Art committed an unforeseeable intentional tort. b. cannot be held liable for the damages because Art's conduct was not in the scope of employment. c. may be held liable on the basis of negligent hiring. d. may be held liable only if Circus actually knew of Art's background.

Business

 _____ is a spontaneous breakthrough that occurs after the preparation and incubation phases of the creative process.

A. Burnout B. Insight C. Verification D. Perception E. Attribution

Business

The possession of monopoly power is the only element needed to establish the offense of monopolization

Indicate whether the statement is true or false

Business