With Regard to Driving and Talking on a Cell Phone

question 172

Multiple Choice

With regard to driving and talking on a cell phone, which of the following conclusions is not suggested by the research?

• A) Drivers who are using a hands-free device are not at any increased risk.
• B) Drivers slow down when talking on the phone.
• C) Drivers have slower reaction times when engaged in driving and phoning.
• D) Drives talking on cell phones sometimes stop at green lights.

Comprehend the effect of leverage on the cost of equity according to M&M Proposition II with no taxes.

Grasp the impact of debt financing on a firm's value and the cost of capital when taxes are considered.

Recognize the difference between business risk and financial risk, and their determinants.

Understand how the optimal capital structure minimizes the weighted average cost of capital (WACC) and maximizes firm value.