A Firm Would Be Indifferent Between Financing Plans When

question 30

Multiple Choice

A firm would be indifferent between financing plans when:

• A) debt is equal to equity.
• B) return on assets equals return on equity.
• C) the cost of borrowed funds equals the return on equity.
• D) the cost of borrowed funds equals the return on assets.

---

Definitions:

Theft of Trade Secrets

Theft of trade secrets involves the unauthorized acquisition, disclosure, or use of confidential business information that provides a competitive advantage, violating legal protections.

Obtaining by Fraud

Acquiring something of value through deceptive practices or false representations with the intent to gain unlawfully.

Statutorily Secured Monopoly

A monopoly status granted and protected by law to a company, often due to the nature of the industry or service it provides.

Useful New Devices

Innovations or inventions that offer a new utility, often eligible for patent protection.