Which of the Following Statements Are Correct in Relation to M

question 30

Multiple Choice

Which of the following statements are correct in relation to M & M Proposition II with no taxes?
I.The required return on assets is equal to the weighted average cost of capital.
II.Financial risk is determined by the debt-equity ratio.
III.Financial risk determines the return on assets.
IV.The cost of equity declines when the amount of leverage used by a firm rises.

• A)I and III only
• B)II and IV only
• C)I and II only
• D)III and IV only
• E)I and IV only

Know the difference between possessory and non-possessory liens, and how equitable principles influence lien enforcement.

Understand voluntary agreements for debt reduction and their implications for creditors and debtors.

Distinguish between the effects of bankruptcy on different types of debt and liability agreements.

Understand the concept of cultural competence and its significance in working with diverse populations.

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Definitions:

Behavior Modeling

A training method that involves observing, learning, and then imitating the behavior of others to acquire new skills or behaviors.

Instructional Design

A process of systematically developing training to meet specified needs.

Needs Assessment

The process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training, if any, are necessary.

Job-related Knowledge

The expertise and information a person possesses that are directly related to the duties and responsibilities of their occupation.