subject
Business, 15.04.2020 03:54 jvsome8

The proposition that a company borrows up to the point where the marginal benefit of the interest tax shield derived from increased debt is just equal to the marginal expense of the resulting increase in financial distress costs is called: Multiple Choice a. the static theory of capital structure. b. the open markets theorem. c. the pecking-order theory. d. M&M Proposition I, with taxes. M&M Proposition II, with taxes.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 03:00
Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.
Answers: 1
question
Business, 22.06.2019 03:10
On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,000 ($7,500,000 × 8% × ½), receiving cash of $7,740,000. journalize the first interest payment and the amortization of the related bond premium. round to the nearest dollar. if an amount box does not require an entry, leave it blank.
Answers: 3
question
Business, 22.06.2019 18:00
What is the cause of smoky exhaust?
Answers: 1
question
Business, 22.06.2019 18:50
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. the company has grown by over 150 percent in the past year. dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as wikipedia's jimmy wales. what can dominic do to exemplify the social entrepreneurship model?
Answers: 2
You know the right answer?
The proposition that a company borrows up to the point where the marginal benefit of the interest ta...
Questions
question
Biology, 27.10.2021 06:20
question
World Languages, 27.10.2021 06:20
Questions on the website: 13722361