According to the trade-off theory, under which of the following conditions will a firm's capital structure be optimal??
A. ?Marginal bankruptcy-related costs = 0
B. ?Marginal tax shelter benefits - Marginal bankruptcy-related costs = Interest charges
C. ?Debt/assets ratio = Marginal tax shelter benefits
D. ?Marginal tax shelter benefits = Marginal bankruptcy-related costs
E. ?Marginal tax shelter benefits = Interest charges
Answer: D
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Positive organizational behavior places the highest priority on the well-being of its ______.
A. suppliers B. managers C. employees D. customers
Define market-based transfer price. When should market-based transfer pricing be used? Explain your answer.
What will be an ideal response?
Product development usually costs the least among all the steps of the new product development process
Indicate whether the statement is true or false
The key distinguishing feature between the mainstream economics school and the institutional labor economics (or industrial relations) school is that the industrial relations school believes that labor markets:
A. Are not perfectly efficient. B. Operate similar to other types of markets. C. Have too few suppliers of labor (workers) but many purchasers of labor (employers). D. Work only when there is a "working class" that is excluded from the "ownership class."