Which of the following capital structure theories assumes that market information is symmetric??
A. ?Signaling theory
B. ?Contingent theory
C. ?Arbitrary theory
D. ?Budgeting theory
E. ?MM capital structure theory
Answer: E
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Firms with high strategic stakes in achieving success in an industry generally are destabilizing because they may be willing to accept unreasonably low profit margins to establish themselves
Indicate whether the statement is true or false
Hillsborough Street Manufacturing Inc Hillsborough Street Manufacturing Inc incurred the following costs in 2011: Direct materials used $51,000 Direct labor costs 45,000 Factory rent and utilities 18,000 Factory equipment depreciation 7,500 Marketing expenses 8,000 Administrative expenses 10,000 45,000 units were produced during the year out of which 38,000 units were sold for $10 each. There was
no beginning or ending raw materials or work in process inventory. Refer to the Hillsborough Street Manufacturing Inc information above. What is the net operating income for the year? (Ignore taxes) A) $222,500 B) $244,200 C) $240,500 D) $259,400
The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?
A. A utility bill was received for the current month, to be paid in the following month. B. Cash was received from providing services to a customer. C. The company paid an amount due on credit. D. Advertising expense for the month was paid in cash. E. Equipment was purchased for cash.
Which of the following statements about the resource-based view of organizations is accurate?
A. It suggests that resources are valuable because they are plentiful. B. It describes what makes resources capable of creating long-term profits for the firm. C. It suggests that the value of resources depends on a single factor. D. A firm's resources include resources related to individual behavior. E. It suggests that inimitable resources are of lesser value to an organization.