Which one of these is not an underlying assumption of MM Proposition I?
A. Securities are fairly priced.
B. Capital markets function well.
C. Investors can borrow or lend on the same terms as firms.
D. Taxes remain at their current non-zero levels.
Answer: D
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Which of the following statements is true with regard to a percent-of-sales marketing and sales budget?
A) It works by implementing a harvest strategy that requires more than the normal percentage of sales to achieve share and sales objectives. B) An aggressive growth strategy in this budget slowly reduces marketing and sales expenses as a percentage of sales while market share is harvested over time. C) The cost of customer acquisition and retention is the primary determinant of the budget and resource allocation under this approach to budgeting. D) It focuses on previous experience, but it could vary from past experience depending on the nature of the strategic market plan. E) It specifies each marketing task and the amount needed to accomplish it, given a particular strategic market plan and the task-related marketing mix strategies.
Cost accounting systems are used ________.
A) to accumulate product cost information B) to accumulate and assign period costs to products C) by manufacturing companies, not service companies D) by stockholders for decision-making purposes
A fixed-rate mortgage is a standard mortgage with a rate of interest that changes periodically
a. True b. False Indicate whether the statement is true or false
El Capitan Foods has a capital structure of 36% debt and 64% equity, its tax rate is 35%, and its beta (leveraged) is 1.40. Based on the Hamada equation, what would the firm's beta be if it used no debt, i.e., what is its unlevered beta, bU?
A. 1.03 B. 1.29 C. 0.80 D. 0.88 E. 1.15