Which of the Following Is NOT a Factor Offsetting the Tax

question 52

Multiple Choice

Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing?

• A) increased agency costs
• B) increased probability of financial distress (bankruptcy) due to fixed interest payments
• C) alternative tax shields to those supplied by interest payments
• D) All of the above offset the tax advantage of debt as a source of financing.

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Definitions:

Bacteriophages

Viruses that infect and replicate within bacteria, used in biotechnology for gene therapy and as bacterial control agents.

X-ray Diffraction

A technique used to determine the atomic and molecular structure of a crystal, by measuring the angles and intensities of X-rays that are scattered by the crystal.

Watson

Refers to James Watson, who, along with Francis Crick, Maurice Wilkins, and Rosalind Franklin, is credited with discovering the double helix structure of DNA.

Crick

Francis Crick, a British molecular biologist, biophysicist, and neuroscientist, known for co-discovering the structure of DNA along with James D. Watson.