The Modigliani and Miller (MM) articles implicitly assumed that bankruptcy did not exist. That led to the development of the "trade-off" model, where the firm's value first rises with the use of debt due to the tax shelter of debt, but later falls as more debt is added because the potential costs of bankruptcy begin to more than offset the tax shelter benefits. Under the trade-off theory, an optimal capital structure exists.
Answer the following statement true (T) or false (F)
True
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The population of Djibouti is approximately 460,700. To serve the communication needs of this nation, there is one Internet service provider, two AM radio stations, two FM radio stations, and one television station
There are only 8,000 telephone lines in the whole country. This is a partial description of Djibouti's ________. A) gross national product (GNP) B) business cycle C) economic infrastructure D) standard of living E) gross domestic product (GDP)
Which of the following is/are not true?
a. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement. b. Employers often contribute cash to a trust, an entity legally separate from the employer, to fund their retirement obligations. c. The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ. d. Payments to employees come from both the employer's contributions and investment returns of the firm's long term investment assets established to fund the retirement obligations. e. all of the above
Since interviewers typically delay forming their impression about an applicant until well into the interview, the interviewee need not be concerned with nervousness or a slow warm up in the first few minutes
Indicate whether the statement is true or false
Which of the following terms refers to a slight deviation from the employer's business that is still within the scope of employment?
a. Frolic b. Detour c. Errand d. Chore