All Other Things Being Equal, a Policy of Financing Its

question 76

Multiple Choice

All other things being equal, a policy of financing its assets with a relatively ____ proportion of short-term debt will tend to ____ the variability (or risk) of the after-tax earnings of the firm.

• A) large; decrease
• B) small; increase
• C) constant; lower
• D) large; increase

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Definitions:

Lymph Trunks

Large lymphatic vessels that collect lymph from smaller lymphatic vessels and empty it into the venous system.

Thoracic

Pertaining to the chest region, including the thoracic vertebrae, ribs, and the organs within the thoracic cavity.

MALT Nodules

Clusters of lymphoid tissue found in mucous membranes throughout the body that help protect against pathogens.