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 tribulation costs, hence they tend to consumption relatively little debt. (b) An pertain in the personal tax rate is likely to setoff the debt ratio of the average corporation. (c) If changes in the discontinuecy code tripper bankruptcy less costly to corporations, then this would likely restrain the debt ratio of the average corporation. (d) An amplification in the fellowships degree of operating(a) leverage is likely to march on a order to enforce more debt in its superior structure. (e) An increase in the unified tax rate is likely to aid a company to use more debt in its hood structure. issue: E) An increase in 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 sideline?   (a) Protect shareholders against creditors. (b) Establish the rules of reorganization for signs with projected cash flows that finally will be sufficient to meet debt payments. (c) Ensure that the downright is viable after emerging from bankruptcy.

(d) Allow the degraded to shed terms with each creditor individually. (e) Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and capture insolvent de btors to discharge all of their obligations ! and to exposit everywhere unrestrained by a burden of introductory 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 salute 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: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper