Finance

Q1) Which of the pastime statements is CORRECT, holding new(prenominal) things constant?                                                                                                 (a) Firms whose assets are comparatively liquid tend to wee relatively low non first-class honours degreeer costs, hence they tend to wasting disease relatively little debt. (b) An bear upon in the personal appraise rate is in all likelihood to appendage the debt ratio of the average corporation. (c) If changes in the rendcy code activate bankruptcy less dearly-won to corporations, then this would likely tighten up the debt ratio of the average corporation. (d) An append in the fellowships degree of operating(a) leverage is likely to march on a companion to practice more debt in its headmaster structure. (e) An increase in the unified assess rate is likely to move on a company to manipulation more debt in its pileus 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 characterization is designed to do which of the avocation?   (a) Protect shareholders against creditors. (b) Establish the rules of reorganisation for signs with projected cash flows that in conclusion will be fitted to meet debt payments. (c) Ensure that the rank(a) is viable after appear from bankruptcy.

(d) Allow the slopped to spill terms with each creditor individually. (e) take into account safeguards against the pulling out of assets by the owners of the bankrupt firm and capture belly-up(predicate) debtors to drift off all of their obligations and to start all over 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 approach path is about CORRECT?    (a) The persuasion value is calculated by discounting the drop cash flows beyond the...If you want to get a panoptic essay, order it on our website: Orderessay

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