Showed That in a World Without Taxes, a Firm's Value

question 14

True/False

showed that in a world without taxes, a firm's value is not affected by its capital structure.

---

Definitions:

General Journal

A primary accounting record used to record all types of accounting transactions including both debits and credits.

Ledger

A book or collection of financial accounts.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to verify that debits equal credits.

Prepaid Expenses

Upfront costs incurred for items or services that are to be obtained in the upcoming time.