Pro Corp and Darths Inc are two companies that are identical in every aspect except for the fact that Pro uses only equity financing, while Darths relies heavily on debt financing. Over the past year, the firms had identical earnings before interest and taxes. If net income for both firms was high, _____
A) ?Pro would pay less taxes than Darths
B) ?Darths would report a higher return on equity than Pro
C) ?Darths would report a lower return on equity than Pro
D) ?Pro would be required to pay no taxes, unlike Darths
B
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Bob, a real estate agent, refers buyers to Bug-B-Gone Termite Company, and the company pays him a referral fee for each inspection sold. Which of the following is correct:
A: This arrangement is permitted if the principals are fully informed and the cost of the inspection is not increased; B: This arrangement is permitted if the principals are fully informed of the amount of the referral fee; C: This arrangement is permitted if the referral fee does not exceed $50; D: This arrangement is prohibited under the Real Estate Law.
A firm's demand data from the last two quarter is displayed in the table. Use a three period moving average to forecast demand for July
Month Demand January 154 February 148 March 214 April 180 May 225 June 246 A) 206 B) 217 C) 223 D) 226