All Else Constant, Which One of the Following Will Increase

question 222

Multiple Choice

All else constant, which one of the following will increase the capital structure weight of debt as used in the computation of a firm's weighted average cost of capital?

• A) An increase in the firm's tax rate.
• B) A decrease in the market value of the firm's debt.
• C) An increase in the number of preferred shares outstanding.
• D) A decrease in the number of common shares outstanding.
• E) An increase in the prepayment of a bond issue.

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Definitions:

cDNA

Complementary DNA synthesized from an mRNA template using the enzyme reverse transcriptase, used in cloning and gene expression studies.

mRNA

Messenger RNA, a single-stranded RNA molecule that carries genetic information from DNA to the ribosome, where it directs protein synthesis.

Genomic Library

A collection of DNA fragments that represents the entire genome of an organism.

DNA Fragments

Pieces of DNA that are the result of breaking the DNA molecule into smaller segments through various methods.