Which of the following statements is CORRECT, holding other things constant?
A. Firms whose assets are relatively liquid tend to have relatively low bankruptcy costs, hence they tend to use relatively little debt.
B. An increase in the personal tax rate is likely to increase the debt ratio of the average corporation.
C. If changes in the bankruptcy code make bankruptcy less costly to corporations, then this would likely lead to lower debt ratios for corporations.
D. An increase in the company's degree of operating leverage would tend to encourage the firm to use more debt in its capital structure so as to keep its total risk unchanged.
E. An increase in the corporate tax rate would in theory encourage companies to use more debt in their capital structures.
Answer: E
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The operating lease method is appropriate when the
a. lessee enjoys most of the rewards and bears most of the risks of ownership. b. lessor enjoys most of the rewards and bears most of the risks of ownership. c. lessor enjoys most of the rewards, only. d. lessor bears most of the risks of ownership, only. e. lessee enjoys most of the rewards, only.
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A) dividing the asset's cash distributions during the period, plus change in value, by its beginning-of period investment value B) dividing the asset's cash distributions during the period, plus change in value, by its ending-of period investment value C) dividing the asset's cash distributions during the period, minus change in value, by its ending-of period investment value D) dividing the asset's cash distributions during the period, minus change in value, by its beginning-of period investment value
Telnet was designed for
a. accessing web pages b. securely transmitting and receiving web content c. remote access and login capabilities d. reserving resources in a network
Compare and contrast the employment-at-will policies and due process policies.
What will be an ideal response?