This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 740 times)

xxxxxxxxxxxx

  • Full Member
  • ***
  • Posts: 142
Which of the following statements is correct?

A firm with low business risk is less likely to increase its use of financial leverage than a firm with high business risk, assuming all else is equal.


There is no reason to think that changes in the personal tax rate would affect firms’ capital structure decisions.


In general, a firm with high operating leverage also has a large proportion of its total costs in the form of fixed costs.


Suppose a firm has less than its optimal amount of debt. Increasing its use of debt to the point where it is at its optimal capital structure will decrease the costs of both debt and equity financing.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by xxxxxxxxxxxx on Aug 7, 2023

RodrickHac

  • Full Member
  • ***
  • Posts: 174
    • anestencream.com
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly



xxxxxxxxxxxx

  • Member
  • Posts: 142
Reply 2 on: Aug 7, 2023
Excellent


JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

For a complete list of videos, visit our video library