What are the issues in determining the optimal leverage for a firm?
What will be an ideal response?
Answer: While interest tax shield tends to increase the value of a firm , the direct and indirect cost of financial distress tend to increase with leverage. Thus, there is an optimal leverage where the costs and benefits are optimized.
Business
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An organization's cost base is made up of the _______ costs associated with delivering the organization's products or services to the marketplace.
A. good B. aggregate C. total D. bad E. positive
Business
Three major groups of individuals that may attack information systems include information personnel, users, and employees
Indicate whether the statement is true or false.
Business