If Flagstaff Currently Maintains a

question 62

Multiple Choice

If Flagstaff currently maintains a .5 debt to equity ratio,then the value of Flagstaff's interest tax shield is closest to:

• A)$11 million
• B)$18 million
• C)$10 million
• D)$24 million

---

Definitions:

Recourse

The ability to seek compensation or redress, often through legal means, from a source when subjected to damage or loss.

Procedural Unconscionability

A legal term referring to a situation where the terms of a contract are so unfair or the process is so unequal that it shocks the conscience.

Substantive Unconscionability

Refers to a condition in contract law where the terms of a contract are extremely unfair or one-sided in favor of the party who has the superior bargaining power.

Administrative Costs

Expenses related to the general operation of an organization, such as salaries of non-production staff, office supplies, and utilities.