According to the MM Model of Capital Structure, the Present

question 194

Multiple Choice

According to the MM model of capital structure, the present value of the tax shield is offset by potential ____, resulting in an optimal capital structure.

• A)bankruptcy costs
• B)interest expense
• C)operating costs
• D)a and b

Recognize the characteristics of negligent, strict-liability, and intentional torts.

Understand the principles of assumption of risk and defenses in tort law.

Differentiate between intentional and negligent torts.

Explain the concept of defamation, including defenses and privileges against it.