Match Each of the Following Terms with the Appropriate Definitions

question 252

Multiple Choice

Match each of the following terms with the appropriate definitions.
-A bank authorized to accept deposits of amounts payable to the federal government,including payroll taxes.

• A)Short-term note payable
• B)Deferred income tax liability
• C)Current liabilities
• D)Warranty
• E)Employee benefits
• F)Federal depository bank
• G)Payroll register
• H)Gross pay
• I)Payroll bank account
• J)Times interest earned

---

Definitions:

M&M Proposition

The Modigliani-Miller Proposition argues that in an ideal market, the value of a firm is unaffected by how it is financed, whether through debt or equity.

Capital Structure Weights

The proportions of a company's financing derived from different sources, such as debt and equity, used in calculating the cost of capital.

Levered Firm

A company that uses debt in addition to equity in its capital structure, often to finance operations and grow.