Match the Definition of the Names or Items on the Left

question 41

Multiple Choice

Match the definition of the names or items on the left to the definition on the right. Each definition can be used only once.
-W-4 form

• A) Employee’s withholding allowance certificate
• B) Wage and Tax Statement provided annually before January 31
• C) Money withheld from paycheck and paid to the federal government
• D) Employment Eligibility Form
• E) Money withheld from paycheck and paid to the state
• F) 1.45% of employee wages matched by an additional 1.45% paid by the employer
• G) Federal unemployment tax paid by the employer
• H) Social Security tax to fund the U.S. retirement program
• I) Amount of pay before deductions
• J) Wages based on number of hours worked times hourly rate
• K) Wages paid as fixed amount of money that does not depend on the number of hours worked

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Definitions:

M&M Proposition I

A theory in corporate finance suggesting that in a perfect market, the value of a firm is unaffected by how it is financed, regardless of the debt-to-equity ratio.

Unlevered Cost of Capital

The cost of capital for a company that has no debt, reflecting the risk of investing in the company's equity alone.

Firm No Debt

A business that operates without borrowing money or issuing debt instruments.

Business Risk

The exposure a company or investor faces due to uncertainties in profits or dangers in its industry or economy.