Answer:
A. We can use Modigliani and Miller's first proposition to derive an explicit relationship between leverage and the equity cost of capital.
Explanation:
Their main conclusions can be summarized as: In the absence of taxes, firm capital structure is irrelevant. With taxes, a firm's cost of capital can be lowered through issuing debt. This highlights the importance of debt as a tax shield.
Modigliani and Miller's conclusion went against the common view that even with perfect capital markets, leverage would affect a firm's value.
Answer:
The correct answer is B
Explanation:
Under the contract law, the cure is defined as the seller who mostly has a limited right to fix or else cure the problem, when the goods or the delivery under the contract fails to accomplish the particular terms of the contract.
When the time for the performance has not expired or lapsed, the seller might cure any kind of the non- conformity. So, the cure happen or occur when the seller ships the conforming goods to the buyer in order to replace the prior tender which is non- conforming.
Answer:
c. It is usually easier to transfer ownership in a corporation than in a partnership
Explanation:
(A) (D) <em>Shareholders has limited liability</em>. It is the partnership members which has unlimited liability.
(E) Corporations, because manage large sum of capital<em> are more regulated.</em>
(B) Corporation can lobby to get tax exemption, also the income tax scales with income, not with business legal form. <em>There is no tax disadvantage</em>
(C) In a Corporation you can sale your shares (right of ownership) any time in open market. While in a partnership there are restrictions from you leaving right away.