According to Modigliani and Miller, altering a firm's capital structure will not change a firm's value because
A) taxes have no effect on capital structure decisions.
B) the value of a firm is based on the earnings power of its assets.
C) markets are not efficient and shareholders can be fooled by capital structure changes.
D) bankruptcy costs rise when debt levels increase.
E) the cost of equity falls as more debt is issued.
B
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Indicate whether the statement is true or false
Which of the following reports will help an organization assess opportunities?
A) Failure analysis report B) Troubleshooting report C) Feasibility reports D) Justification reports E) Due diligence report
Once the products are completed, packaged, and ready for sale, their costs are transferred to the Finished Goods Inventory account
Indicate whether the statement is true or false
If a plaintiff knows of and voluntarily enters into or participates in a risky activity that results in
injury, what is the most likely defense that can be raised by a defendant? A) Superseding event B) Contributory negligence C) Negligence per se D) Comparative negligence E) Assumption of the risk