M & M Proposition I with Tax Supports the Theory

question 6

Multiple Choice

M & M Proposition I with tax supports the theory that:

• A)a firm's weighted average cost of capital decreases as the firm's debt-equity ratio increases.
• B)the value of a firm is inversely related to the amount of leverage used by the firm.
• C)the value of an unlevered firm is equal to the value of a levered firm plus the value of the interest tax shield.
• D)a firm's cost of capital is the same regardless of the mix of debt and equity used by the firm.
• E)a firm's cost of equity increases as the debt-equity ratio of the firm decreases.

Identify the causes of urban riots in the 1960s as cited by the Kerner Report.

Explain the changes in U.S. immigration policy after 1965.

Understand the significance of the Gulf of Tonkin resolution in escalating U.S. involvement in Vietnam.

Describe the critiques of American liberalism by the New Left movement.

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