The inexpensive nature of long-term debt in a firm's capital structure is due to the fact that ________
A) the equity holders are the true owners of the firm
B) equity capital has a fixed return
C) interest payments are tax-deductible
D) equity holders have a higher position in the priority of claims
C
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Explain why inflation risk is a problem for investors.
What will be an ideal response?
As a consequence of many manufacturing firms attempting to reduce the number of suppliers with which they deal, vendors that supply high-quality products and reliable delivery schedules may expect increased business
Indicate whether the statement is true or false
Inventory turnover shows how many times the average inventory was sold during the year
Indicate whether the statement is true or false
Thelma purchased a used truck from Hall that had been manufactured by International Harvester. To work on the truck engine, Thelma had to have the cab of the truck raised. When it was so raised, the cab fell unexpectedly and fatally injured Thelma. Suit
was brought for her wrongful death against Hall and International Harvester. The suit was based on theories of negligence, strict tort liability, and breach of warranty. The defense was raised that there was no liability because the sale to Thelma had been made "as is" and the truck was a used truck. Were these defenses valid?