__________ firms use almost no debt in their capital structure. a. Aerospace b. High-tech c. Aerospace...
__________ firms use almost no debt in their capital structure.
a. Aerospace
b. High-tech
c. Aerospace and pharmaceutical
d. Aerospace and retailing
e. Utility
Homework Answers
Ans b. High-tech
High-tech firms use almost no debt in their capital structure. High tech firms include Apple. IBM, Amazon. They rely more on equity because of their nature of Technological innovation and development which might or might not produce higher returns.
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__________ firms use almost no debt in their capital
structure.
a. Aerospace
b. High-tech
c. Aerospace...
Firms in the __________ industry(ies) use a great deal of debt. a. computer software b. computer...
Firms in the __________ industry(ies) use a great deal of debt. a. computer software b. computer software and pharmaceutical c. aerospace d. aerospace and retailing e. utility and auto manufacturing
Firms tend to use less debt when A. Operating leverage is high O B. Business risk...
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3. In general, observed capital structures: A. Tend to overweigh debt in relation to equity. B. Are easily explained in...
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Two firms are identical except for their capital structure. Company A is funded by 30% debt...
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the optimal capital structure for a company is: Select one: a. 50% debt, 50% equity b....
the optimal capital structure for a company is: Select one: a. 50% debt, 50% equity b. depends of the company ' c. No debt 'd. 20% debt, 80% equity
Synergy and Dynaco are the only two firms in a specific high-tech industry. They face the...
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Firms HD and LD are identical except for their use of debt and the interest rates...
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Firms tend to use less debt when A. Operating leverage is high O B. Business risk is high C. They have many intangible assets O D. All of the above
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Synergy and Dynaco are the only two firms in a specific high-tech industry. They face the following payoff matrix as they decide upon the size of their research budget:
(a) Does Synergy have a dominant strategy? Explain.
(b) Does Dynaco have a dominant strategy? Explain.
(c) Is there a Nash equilibrium for this scenario? Explain. (Hint: Look closely at the definition of
Nash equilibrium.)
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