The MM theory with taxes implies that firms should issue maximum debt. In practice, this does not occur because:

the weighted average cost of capital is inversely related to the debt-equity ratio.

the weighted average cost of capital is directly related to the debt-equity ratio.

U. S. regulations require the debt-equity ratio of publicly-traded firms to be in the range of .3 to .7.

bankruptcy is a disadvantage to debt.

debt is more risky than equity.

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58

Financial performance is measured in many ways. requirements 1. explain the difference between lag and lead indicators. 2. the following is a list of financial measures. indicate whether each is a lag or lead indicator: a. income statement shows net income of $100,000 b. listing of next week's orders of $50,000 c. trend showing that average hits on the redesigned website are increasing at 5% per week d. price sheet from vendor reflecting that cost per pound of sugar for the next month is $2 e. contract signed last month with large retail store that guarantees a minimum shelf space for grandpa's overloaded chocolate cookies for the next year