The fact that many corporations use debt financing as well as equity financing creates all of the following except:
A. consistently lower debt-to-equity ratios.
B. greater risk for the stockholders.
C. the opportunity for a greater expected return for the stockholders.
D. leverage for the stockholders.
Answer: A
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The implicit rental rate for capital includes the
A) total value of a piece of capital equipment. B) interest income forgone by purchasing the piece of capital equipment. C) firm's normal profit. D) amount paid for the use of a piece of capital equipment owned by someone else.
Suppose there is a shortage of computer programmers, but firms refuse to hire unemployed typists and train them. This is one reason for ________ unemployment
A) turnover B) seasonal C) mismatch D) cyclical
In the short run where total variable cost is _________ at a(n) _________ rate, marginal cost is positive and decreasing.
A) increasing; increasing B) increasing; decreasing C) decreasing; increasing D) decreasing; decreasing
Compared to the perfect competitor, the monopolist is ______ efficient and charges a ______ price.
Fill in the blank(s) with the appropriate word(s).