The Tradeoff Theory suggests that ________
A) a firm should choose a debt level where the tax savings from increasing leverage are just offset by the increased probability of incurring the costs of financial distress
B) with higher costs of financial distress, it is optimal for a firm to choose higher leverage
C) differences in the magnitude of financial distress costs and the volatility of cash flows cannot explain the differences in the use of leverage across industries
D) there is no rational explanation for why firms choose debt levels that are too low to fully exploit the debt tax shield
Answer: A
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Those perceived as ethical leaders do many of the things "traditional leaders" do (e.g., reinforce the conduct they are looking for, create standards for behavior, and so on), but they do that within the context of ________.
Fill in the blank(s) with the appropriate word(s).
Chelsea Bridge is 16 years old, but looks 21. She buys an expensive television for $2,000 on credit, telling the salesperson that this is her 21st birthday present to herself. The salesperson honestly believes her
She makes two payments of $100 each, and then can't pay any more. The store sues her for the balance owing. Which of the following is TRUE? A) Because Chelsea looks over 21, the contract is enforceable against her. B) Because Chelsea lied about her age, the contract is enforceable against her. C) The contract is not enforceable against Chelsea because she is a minor. D) The contract is enforceable only in the province of Quebec. E) Both A and B
Dan learned how to knit by watching Bernice knit and copying what she did. This is an example of
A. modeling. B. distributed learning. C. reinforcing behavior. D. individual learning difference.
A corporation has perpetual existence in most states unless the articles of incorporation state otherwise
Indicate whether the statement is true or false