For Each of the Following Questions That Might Appear on an Application

question 37

Essay

For each of the following questions that might appear on an application form, identify them as either (A) appropriate or (B) inappropriate, from a legal perspective.
a.Appropriate
b.Inappropriate
-What is your race?

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Definitions:

Capital Structure

Refers to the way a corporation finances its assets through a combination of equity, debt, or hybrid securities.

M&M Proposition I

Modigliani and Miller's principle suggesting the irrelevance of financial leverage on a company's valuation in an ideal market.

Debt-Equity Ratio

A calculation of a firm's financial leverage determined by dividing its overall liabilities by the equity of its shareholders.

Interest Tax Shield

The reduction in income taxes that results from the deductibility of interest payments from taxable income.