Which of the following statements is FALSE?
A) Investors can alter the leverage choice of the firm to suit their personal tastes either by borrowing and reducing leverage or by holding bonds and adding more leverage.
B) On the market value balance sheet the total value of all securities issued by the firm must equal the total value of the firm's assets.
C) The market value balance sheet captures the idea that value is created by a firm's choice of assets and investments.
D) One application of MM Proposition I is the useful device known as the market value balance sheet of the firm.
A
Explanation: A) Investors can alter the leverage choice of the firm to suit their personal tastes either by borrowing and increasing leverage or by holding bonds and reducing leverage.
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Adelphia Manufacturing issued $70,000 of direct materials and $10,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction?
A) Raw Materials Inventory 80,000 Finished Goods Inventory 70,000 Work-in-Process Inventory 10,000 B) Work-in-Process Inventory 80,000 Raw Materials Inventory 80,000 C) Work-in-Process Inventory 70,000 Manufacturing Overhead 10,000 Raw Materials Inventory 80,000 D) Manufacturing Overhead 80,000 Raw Materials Inventory 80,000
Give three reasons why, at some point, every business needs to examine growth opportunities outside the markets it serves. Name and describe four fundamental offensive strategic market plans for entering new markets
What will be an ideal response?