In the Absence of Taxes,the Capital Structure Chosen by a Firm

question 53

Multiple Choice

In the absence of taxes,the capital structure chosen by a firm doesn't really matter because of:

• A)taxes.
• B)the interest tax shield.
• C)the relationship between dividends and earnings per share.
• D)the effects of leverage on the cost of equity.
• E)homemade leverage.

---

Definitions:

Autonomic Arousal

The activation of the autonomic nervous system, leading to physiological changes such as increased heart rate, sweating, and heightened alertness.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, usually measured in the arteries and considered a vital indicator of cardiovascular health.

Heart Rate

The quantity of heart pulsations within a certain time frame, usually measured in beats per minute (BPM).

Respiration Rate

The number of breaths taken per minute, a vital sign used to assess overall health and physical condition.