According to the trade-off theory of capital structure,
A. optimal capital structure occurs when the benefits of limited liability is just offset by the value of the firm's lawyers' claims.
B. optimal capital structure occurs when the stockholders' right to default is balanced by the bondholders' right to get interest and principal payments.
C. optimal capital structure occurs when the present value of tax savings on account of additional borrowing just offsets the increase in the present value of costs of distress.
D. None of these options are correct.
Answer: C
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Which of the following is true about the Federal Unemployment Tax Act?
A) The federal government pays all unemployed workers the same amount. B) State governments pay unemployed workers according to a federal schedule of benefits. C) States access money from the federal government's Unemployment Insurance Fund. D) The federal government sets eligibility requirements for all unemployed workers.
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The process of_________is the eliminating, reducing or restructuring the control of an industry
Fill in the blank(s) with correct word