One Negative Effect of Using More Debt in Your Capital

question 1

Multiple Choice

One negative effect of using more debt in your capital structure is

• A)greater threat of a hostile takeover.
• B)higher corporate income taxes.
• C)lower debt-equity ratio.
• D)lower credit ratings.

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Definitions:

Civil Rights Movement

A decades-long struggle, particularly during the 1950s and 1960s, by African Americans and allies to end racial segregation and discrimination against black citizens and secure legal recognition and federal protection of citizenship rights enumerated in the Constitution and federal law.

Jim Crow Laws

Racial segregation laws enacted in the Southern United States after the Civil War, legally enforcing discrimination against African Americans until the mid-20th century.

GI Bill Of Rights

U.S. legislation passed in 1944 to provide benefits to World War II veterans, including funding for education, home loans, and unemployment benefits.

Bretton Woods Conference

International meeting held in the town of Bretton Woods, NewHampshire, in 1944 in which participants agreed that the American dollar would replace the Britishpound as the most important international currency. The conference also created the World Bank andInternational Monetary Fund to promote rebuilding after World War Ⅱ and to ensure that countriesdid not devalue their currencies.