Which method will yield higher cash flows from operating activities?
A. The indirect method.
B. The direct method.
C. Both direct and indirect methods will yield the same amount.
D. Depends upon the situation.
C
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Usually, a submission agreement will specify all but which of the following conditions?
A) how the arbitrator will be selected B) the nature of the dispute C) whether a mediator will render a preliminary judgment D) any constraints on the arbitrator's authority to remedy the dispute
When agency and bankruptcy costs are considered, the optimal capital structure has a debt level where
A) bankruptcy costs are maximized. B) the debt/equity ratio is 2:1. C) the cost of equity equals zero. D) the cost of debt equals the cost of equity. E) the sum of agency and bankruptcy costs equal the benefits of using debt.