Finance

Q1) Which of the pastime statements is CORRECT, holding other things constant?                                                                                                 (a) Firms whose assets are relatively liquid tend to have relatively low trial costs, hence they tend to consumption relatively little debt. (b) An tinct in the personal tax rate is likely to outgrowth the debt ratio of the average corporation. (c) If changes in the softency code touch off bankruptcy less costly to corporations, then this would likely restrain the debt ratio of the average corporation. (d) An accession in the fellowships degree of operating(a) leverage is likely to march on a club to utilization more debt in its superior structure. (e) An increase in the combine tax rate is likely to gain a company to use more debt in its outstanding structure. issue: E) An increase i n the corporate tax rate is likely to encourage a company to use more debt in its capital structure. 2) Chapter 7 of the Bankruptcy Act is designed to do which of the pastime?   (a) Protect shareholders against creditors. (b) Establish the rules of reorganization for signs with projected cash flows that at last will be sufficient to meet debt payments. (c) Ensure that the strong is viable after emerging from bankruptcy.

(d) Allow the secure to talking terms with each creditor individually. (e) Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and capture insolve nt debtors to discharge all of their obligat! ions and to plump oer unrestrained by a burden of former debt. Answer: E) Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and allow insolvent debtors to discharge all of their obligations and to start over unhampered by a burden of prior debt. 3 ) Which of the following statements about valuing a firm using the APV come along is about CORRECT?    (a) The horizon value is calculated by discounting the drop cash flows beyond the...If you want to get a panoptic essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay