The benefits of debt financing over equity financing are likely to be highest in which of the following situations?
| A. | High marginal tax rates and low non-interest tax benefits |
| B. | Low marginal tax rates and low non-interest tax benefits |
| C. | High marginal tax rates and high non-interest tax benefits |
| D. | Low marginal tax rates and high non-interest tax benefits. |
|
Option: A Explanation : Click on Discuss to view users comments. |
Profit volume ratio of an enterprise is 40%. To offset 10% decrease in selling price, how much sales must be increased?
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 40% |
|
Option: B Explanation : Click on Discuss to view users comments. |
In a decision problem having four possible alternative decisions and six possible states of nature, the pay-off table will include
| A. | Four payoffs |
| B. | Six payoffs |
| C. | Twenty four payoff |
| D. | Ten payoff |
|
Option: C Explanation : Click on Discuss to view users comments. |
Which is not relevant of succession planning?
| A. | Analysis of the demand for managers |
| B. | Review of existing executives |
| C. | Planning individuals career paths |
| D. | Recruitment to meet immediate needs |
|
Option: D Explanation : Click on Discuss to view users comments. |
