Other things held constant, the lower a firm's tax rate, the more logical it is for the firm to use debt.
Answer the following statement true (T) or false (F)
False
Rationale: This is false. The lower the tax rate, the less valuable the tax shelter from debt. Think about the cost of debt in the WACC: rd(1 - T). If T is low, then the cost of debt is not reduced as much as when T is high.
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Which of the following acts proposed the creation of new organizations to monitor rules associated with the capital, liquidity, and risk of financial institutions to help prevent future failures of mega financial organizations?
A. Securities and Exchange Commission Act B. Wall Street Transparency and Accountability Act C. Emergency Economic Stabilization Act of 2008 D. Basel III Accord (2010) E. Dodd-Frank Wall Street Reform and Consumer Protection Act (2010)
The time span for which the master schedule extends is called the:
A) planning horizon. B) forecast period. C) time fence. D) time bucket. E) none of the above
A deed contained the language, "I, Jacob Smith, of Washington County, warrant and defend unto Christina Smith ... the following real estate ..." Although the deed included all the necessary requirements, the parties are now unclear as to the type of deed given and what warranties, if any, were given. Which of the following statements is correct?
A)?This is a general warranty deed. B)?This is a special warranty deed. C)?This is a quitclaim deed. D)?This is not a deed because there is no language of conveyance.
The behavioral approach to leadership attempts to identify
A) what a leader's followers think of the leader. B) which behaviors a leader should expect from their followers. C) which hierarchical structure is most conducive to leadership. D) what good leaders do, that is, what behaviors they exhibit. E) which personality traits a good leader exhibits.