The Optimal Capital Structure Will Tend to Include More Debt

question 9

Multiple Choice

The optimal capital structure will tend to include more debt for firms with

• A)less taxable income.
• B)lower probability of financial distress.
• C)substantial tax shields from other sources.
• D)the lowest marginal tax rate.
• E)the highest depreciation deductions.

Recognize behavioral contagion in groups, exemplified by the "bad apple" effect.

Comprehend how group decisions can suffer from limited information and lack of optimal leadership.

Identify the psychological dynamics involved in conforming to group norms or decisions under pressure.

Identify the non-oil related corporation with sales over $200 billion in 2008.

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Definitions:

Progress Reports

Documents or updates that communicate the development, advancement, or status of a project or task over a certain period.

Assignment Of Tasks

The distribution of specific duties or jobs to individuals or teams within an organization or project.

Downward Communication

The flow of information from higher levels of an organizational hierarchy to lower levels.