Which method of legally describing land relies on range lines?

Consider the Modigliani and Miller world of corporate taxes. An unlevered (all-equity) firm value is $200 million. By adding debt, the annual interest expense is $40 million, the corporate tax rate is 25%, and the discount rate on the tax shield is 6%

What is the value of the firm after adding debt? A) $366.67 million B) $425 million C) $433.33 million D) $450 million

Capital appreciation funds select stocks of ________ and tend to be ________ risky than total return funds

A) large, established companies that pay dividends regularly; more B) large, established companies that pay dividends regularly; less C) companies expected to grow rapidly; more D) companies expected to grow rapidly; less