Assume That Capital Markets Are Perfect Except for the Existence

question 66

Multiple Choice

Assume that capital markets are perfect except for the existence of corporate taxes.Your firm pays 40% of earnings in taxes and you decide to issue $25 million in new debt and $25 million in new equity.Your ownership stake in the firm following these new issues of debt and equity is closest to:

• A)58%
• B)55%
• C)33%
• D)50%

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Intelligence

The ability to acquire and apply knowledge and skills.

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Performers who express ideas, stories, rhythm, and sound through bodily movements.

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The capacity for introspection, self-awareness, and the ability to engage in thoughtful analysis and evaluation of one's thoughts, feelings, and actions.