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NEW QUESTION: 1
Another term for top down estimating is:.
A. Analogous estimating
B. Life-cycle costing
C. Parametric modeling
D. Bottom up estimating
Answer: A
NEW QUESTION: 2
Which of the following statements is most correct?
A. The optimal capital structure is the one that maximizes EBIT, and this always calls for a debt ratio, which is lower than the one that maximizes expected EPS.
B. While business risk varies from one industry to another and can change over time, it affects all firms equally within a particular industry.
C. From an operational standpoint the goal of maintaining financial flexibility translates into maintaining adequate reserve borrowing capacity.
D. All of these statements are false.
E. When financial leverage is used, the graphical probability distribution of net income would tend to be more peaked than a distribution where no leverage is present, other things held constant.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Even in normal times, a firm should maintain a reserve borrowing capacity, which is the ability to borrow money at a reasonable cost when good investment opportunities arise.
NEW QUESTION: 3
HOTSPOT
Answer:
Explanation: