Multiple Choice
According to the pecking-order theory,a firm's leverage ratio is determined by:
A) the value of the tax benefit of debt.
B) equating the tax benefit of debt to the financial distress costs of debt.
C) the firm's financing needs.
D) the market rate of interest.
E) the profitability of the firm.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: Which one of the following is not
Q25: Covenants restricting additional borrowings primarily protect the:<br>A)shareholders'
Q26: Which one of the following is a
Q27: Issuing debt instead of new equity in
Q28: AZC Company is currently valued at $300
Q30: A decrease in a firm's level of
Q31: The introduction of personal taxes may reveal
Q32: Adept Inc.is currently valued at $145,700 in
Q33: The free cash flow hypothesis states that:<br>A)firms
Q34: The optimal capital structure of a firm