According to the basic capital structure theory proposed by Modigliani and Miller (MM), when will a firm's value be maximum??
A. ?When it is financed entirely through equity
B. ?When it is financed 50 percent through debt and 50 percent through equity
C. ?When it is financed entirely through its retained earnings
D. ?When it is financed 100% through debt
E. ?When it is financed 50 percent through equity and 50 percent through its profits
Answer: D
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Networks are mutually beneficial alliances that are generally governed by the law of
A. Reciprocity. B. Supply-demand. C. Risk-reward. D. Brooks' law. E. A squeaky wheel.
Plaxo Corporation has a tax rate of 35% and uses the straight-line method of depreciation for its equipment, which has a useful life of four years. Tax legislation requires the company to depreciate its equipment using the following schedule: year 1- 50%, year 2 - 30%, year 3 - 15% and year 4 - 5%. In 2014 Plaxo purchases a piece of equipment with a four year life and an original cost of $100,000
. What amount will Plaxo record as a deferred tax asset or liability in 2010? a. Deferred tax asset of $25,000. b. Deferred tax liability of $25,000. c. Deferred tax asset of $8,750. d. Deferred tax liability of $8,750.
When evaluating the value chain, all of the following are included in the primary value activities except ________.
A. MIS development B. Service C. Inbound activities D. Operations
Which of the following is not a characteristic of a process costing system?
A) A specific time period is used B) Several Work in Process Inventory accounts are used C) Product costs are grouped by processes, departments, or work cells D) Customized products are manufactured