According to Modigliani and Miller (MM), in a world without taxes the optimal capital structure for a firm is approximately 100% debt financing.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Artis Sales has two store locations. Store A has fixed costs of $125,000 per month and a variable cost ratio of 60%. Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%. At what sales volume would the two stores have equal profits or losses?
A. $325,000. B. $250,000. C. $361,111. D. Cannot determine with the information given.
Which of the following statements is an outcome of research on Generation Z?
A. Generation Z tends to be less patriotic than other generations. B. Generation Z is less racially diverse than previous generations. C. Generation Z is less supportive than previous generations of marrying other races. D. Generation Z is less inclined to have friends from other races than previous generations.
Surrounding oneself with pleasant pictures on the office walls is an example of:
a. behavior-focused strategies b. natural reward strategies c. constructive thoughts d. world-altering strategies
Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?
a. accession b. bailment c. an inter vivos gift d. a mutual-benefit bailment