The combination of debt financing and equity financing that maximizes a firm's value is known as its:
A. optimum degree of financial leverage (DFL).
B. maximum weighted average cost of capital (WACC).
C. maximum business risk.
D. optimal capital structure.
E. optimal indifference point.
Answer: D
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Pocket Corporation acquired 100 percent of the voting shares of Sleeve Inc. by issuing 10,000 new shares of $5 par value common stock with a $30 market value.Required:1. Which company is the parent and which is the subsidiary?2. Define a subsidiary corporation.3. Define a parent corporation.4. Which entity prepares the consolidated worksheet?5. Why are consolidation entries used?
What will be an ideal response?
The correct order of the three stages of accounting is
A) communication, processing, and measurement. B) measurement, communication, and processing. C) processing, measurement, and communication. D) measurement, processing, and communication.
The process of developing automatic responses to a situation built up through repeated exposure to it is referred to as ________.
A. functional learning B. perceptual learning C. motivated learning D. retentive learning E. behavioral learning
How does MBO further motivation?
What will be an ideal response?