If Firm U Is Unlevered and Firm L Is Levered

question 68

Multiple Choice

If firm U is unlevered and firm L is levered, then which of the following is true?
I.V_U = E_U.
II.V_L = E_L + D_L.
III.V_L = E_U + D_L.

• A)I only
• B)I and II only
• C)I, II, and III
• D)III only

---

Definitions:

Job Management

The process of overseeing, scheduling, and controlling the tasks and responsibilities within an organization to ensure that they are completed as required.

Maslow's Need Hierarchy

A psychological theory proposing that humans are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, in ascending order of importance.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Physiological

Pertaining to the branch of biology that deals with the normal functions of living organisms and their parts.