Finance
In a well-functioning capital market if the firm pays no taxes then what is better about borrowing?
Borrowing is not a good idea in this case
No difference who (firm or shareholders) borrows
It is better that the firm borrows
It is better that the shareholders borrow
No difference who (firm or shareholders) borrows
Related posts
Allocating stock in popular new issues to manager of their important corporate clients is called?A. subscription
B. under-performance
C. rights
D. spinning
Which from the following is NOT an example of intangible assets?
A. Trademarks
B. Patents
C. Buildings
D. Technical expertise
If two firms in unrelated line of business merge together, it is called ———- merger?
A. horizontal
B. vertical
C. straight
D. conglomerate
Which from the following is not the role of an underwriter?
A. They provide procedural and financial advice
B. They buy the issue
C. They resell the issue to the public
D. They provide funds to the corporation
The money a investor receive for taking on a risk is called?
A. risk premium
B. risk free rate
C. option value
D. arbitrage
The measure for calculating how much two random variable change together is called?
A. variance
B. covariance
C. skewness
D. kurtosis
Which from the following statements is incorrect?
A. A European option can only be exercised at expiry
B. An American option can only be exercised at expiry
C. A European option is a right but not obligation
D. An American option is a right but not obligation
Leave a Reply