Answer: D. Under MM with corporate taxes, rs increases with leverage, and this increase exactly offsets the tax benefits of debt financing.
Answer:
False
Explanation:
There are two financial performance measures for an investor i.e. market value added (MVA) and the economic value added (EVA). These both are to be used for the cost of equity capital
There is a direct relationship between the MVA and EVA. The MVA deals in the present value of the estimated future EVA and can be think as a net present value
Therefore the given statement is false, It is the total of all EVAs present value
Answer: norms
Explanation: In simple words, norms refers to the standard behavior that is expected from a group or an individual in a certain social or work environment.
Norms includes rules and procedures, which are usual and typical in nature, that guides the actions of an individual while performing the activities he or she is obligated to.
In the given case,the lawyers are also guiding the new employees how to act in certain situation hence they are teaching them norms of the organisation.
2. Safe and 3. Easy to buy
While savings bonds are tax exempt for state and local purposes, you will pay federal income tax when you redeem the savings bond (1. no taxes).
These savings bonds are safe because they are sums lent to the US government and protected and backed by their powers (2. safe). In addition, they are easy and convenient to buy because of the low minimums and the online purchase system on the Treasury website (3. easy to buy).
They are not matched deposits (4. matched deposits). While you may receive them as gifts, you cannot redeem these gifts for a number of years, making them non-fungible (5. Great as gifts). Finally, there is a myth that these are good for the United States government but really they are merely backed and protected by the United States government as a savings mechanism. Saving is good for the US economy but does not have a truly meaningful impact on the US government.
Answer:
Option A is the better choice of the two given any positive rate of return.
Explanation:
