The Kentucky and Virginia Resolutions

question 103

Multiple Choice

The Kentucky and Virginia Resolutions

• A)suggested that judicial review was unconstitutional.
• B)argued against the ratification of the Constitution.
• C)established the practice of judicial review.
• D)were resolutions passed by state legislatures urging members of Congress to propose a constitutional amendment formally outlining judicial review.
• E)None of the above

Comprehend the effect of leverage on the cost of equity according to M&M Proposition II with no taxes.

Grasp the impact of debt financing on a firm's value and the cost of capital when taxes are considered.

Recognize the difference between business risk and financial risk, and their determinants.

Understand how the optimal capital structure minimizes the weighted average cost of capital (WACC) and maximizes firm value.