When a Corporation Issues Permanent Debt,its Value

question 24

Multiple Choice

When a corporation issues permanent debt,its value:

• A) increases by the present value of the tax shield.
• B) decreases by the present value of the tax shield.
• C) increases by the annual interest tax shield.
• D) decreases by the annual interest tax shield.

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Definitions:

Core Self-evaluations

A broad personality concept that consists of more specific traits like self-esteem, generalized self-efficacy, locus of control, and emotional stability.

Neuroticism

A characteristic of personality marked by fluctuations in emotions, nervousness, changeable moods, quick temper, and feelings of sorrow.

Negative Affectivity

A personality trait that involves the predisposition to perceive a wide range of events as threatening or problematic.

Proactive Personality

A stable personal disposition that reflects a tendency to take personal initiative across a range of activities and situations and to effect positive change in one’s environment.