Simulations based on the Black-Scholes model indicate that, for all combinations of leverage (D/V) and firm risk , debt risk:

a. increases as debt maturity increases.
b. decreases as debt maturity increases.
c. remains fairly constant as debt maturity increases.

A

Business

You might also like to view...

An employee survey in a variety of work settings discovered employees want:

A) more discretionary time. B) more recognition. C) more vacations. D) more money.

Business

A ________ is a small device that plugs into a standard computer port to identify the owner

A) one-time-password token B) USB token C) magnetic stripe card D) smart card

Business