Beginning with a zero-leverage company, as debt is substituted for equity in the capital structure ________
A) the overall cost of capital first rises, reaches a maximum, and then declines
B) the overall cost of capital declines
C) the overall cost of capital first declines, reaches a minimum, and then rises
D) the overall cost of capital rises
C
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What will be an ideal response?
Which of the following statements is true of defenses to a strict product liability action?
A) Product misuse is available as a defense to a strict product liability action. B) Assumption of the risk is not permitted as a defense to a strict product liability action. C) The state-of-the-art defense is generally allowed in a strict product liability action. D) The state-of-the-art defense in a strict liability action requires testimony from an expert witness.
What are predictions based on time-series information?
A. Forecasting B. Prediction C. Optimization D. Regression
A parent who expects her child to behave properly can subtly influence the child's behavior so that the mother's expectations are met. This is known as the ________ effect.
A. Drucker B. Golem C. halo D. Pygmalion