Modigliani and Miller argue that when a firm has no acceptable investment opportunities, it should ________

A) preserve the funds and not declare dividends
B) distribute the surplus funds to the owners
C) lower its cost of capital
D) retain the funds until an acceptable project arises


B

Business

You might also like to view...

In a matched swap, the actual loan amount is

A) greater than the notional amount. B) less than the notional amount. C) equal to the notional amount. D) the only amount because there is no notional amount.

Business

Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance.


A) $16,800 F
B) $46,200 U
C) $46,200 F
D) $16,800 U

Business

Relish is a bakery that has introduced a range of low-fat pizzas for its present customers. This is an example of product development strategy

Indicate whether the statement is true or false a. True b. False

Business

Earnings per share is calculated as net income plus preferred dividends divided by the average number of common shares outstanding

Indicate whether the statement is true or false

Business