A(n) ____ Class Is a Class That You Create Only

question 12

Multiple Choice

A(n) ____ class is a class that you create only to extend from.

• A) abstract
• B) inheritance
• C) parent
• D) final

Understand and apply the Modigliani-Miller theorem with corporate taxes to find the value of the firm.

Assess the effect of personal and corporate tax rates on the value added by leverage.

Recognize the different types of leverage and their implications for a firm's financial risk.

Understand the impact of capital structure changes on a firm's cost of equity.

---

Definitions:

Contract

A legally binding agreement between two or more parties that defines and governs the rights and duties of those parties.

Put Option

An agreement in finance that permits the owner to sell a predetermined quantity of a basic asset at an agreed price during an established timeframe, without being compelled to do so.

Protective Put

An options strategy where an investor purchases a put option for an existing stock position to limit potential losses.

Listed Put Option

A put option that is traded on an official exchange, giving the holder the right but not the obligation to sell a specific asset at a set price before the option expires.