The Law of Conservation of Value Implies That

question 41

Multiple Choice

The law of conservation of value implies that

• A)the mix of common stock and preferred stock does not affect the value of the firm.
• B)the mix of long-term and short-term debt does not affect the value of the firm.
• C)the mix of secured and unsecured debt does not affect the value of the firm.
• D)the mix of common stock and preferred stock does not affect the value of the firm, the mix of long-term and short-term debt does not affect the value of the firm, and the mix of secured and unsecured debt does not affect the value of the firm.

---

Definitions:

National Bank

A bank chartered by a government and often given privileged control over the issuance and management of the country's currency and financial policy.

Presidential Election

The process through which citizens of the United States elect the President and Vice President, held every four years, with candidates often representing the major political parties.

Political Tactics

Strategies or maneuvers used by individuals, groups, or organizations to gain political advantage or achieve political objectives.

Henry Clay

A prominent American statesman and politician known for his skills as a compromiser during the first half of the 19th century, playing a key role in several major legislative agreements.