The essence of Modigliani and Miller's irrelevance theory is that
A) increasing operating leverage will maximize EPS.
B) shareholders prefer to invest in firms with a high degree of financial leverage.
C) altering a firm's capital structure will increase its value.
D) utilizing more debt will increase a firm's value.
E) the value of the firm will not be changed by how assets are distributed between bondholders and stockholders.
E
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Alfredo Inc. reports net income of $230,000 for the year ended December 31. It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750 increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.
A. $356,450. B. $319,950. C. $351,450. D. $376,450. E. $263,750.
When computing the NPV of a project, if cash flows are discounted at the real cost of capital, then the cash flows should not be adjusted for inflation
Indicate whether this statement is true or false.
A software program that may be integrated into DSS or other software tools is a(n):
A. group support systems B. executive information system C. intelligent agent D. neural networks
Identify a true statement about performance feedback.
A. It should be provided annually rather than on a daily or weekly basis. B. It should follow a nondevelopmental approach. C. It should involve one-way communication, with the manager as the initiator. D. It should focus on both effective and ineffective performance.