Which of the following statements is true? A. The Principle of Capital Market Ef
ID: 2662118 • Letter: W
Question
Which of the following statements is true?
A.
The Principle of Capital Market Efficiency says to consider thepossible ways to minimize the value lost to capital marketimperfections, such as asymmetric taxes, asymmetric information,and transaction costs.
B.
The Behavioral Principle suggests to look for opportunities tocreate value by issuing securities that are in short supply,perhaps resulting from changes in tax law.
C.
The Signaling Principle says to consider any possible change incapital structure carefully, because financing transactions andcapital structure changes convey information to outsiders and canbe misunderstood.
D.
all of these
Which of the following statements is true?
A.
The Principle of Incremental Benefits says to consider thepossible ways to minimize the value lost to capital marketimperfections, such as asymmetric taxes, asymmetric information,and transaction costs.
B.
The Principle of Valuable Ideas suggests to look foropportunities to create value by issuing securities that are inshort supply, perhaps resulting from changes in tax law.
C.
The Time Value of Money Principle advises to include anytime-value-of-money tax benefits from capital structurechoices.
D.
all of these
Which of the following statements is true?
A.
The Principle of Capital Market Efficiency says to consider thepossible ways to minimize the value lost to capital marketimperfections, such as asymmetric taxes, asymmetric information,and transaction costs.
B.
The Behavioral Principle suggests to look for opportunities tocreate value by issuing securities that are in short supply,perhaps resulting from changes in tax law.
C.
The Signaling Principle says to consider any possible change incapital structure carefully, because financing transactions andcapital structure changes convey information to outsiders and canbe misunderstood.
D.
all of these
Which of the following statements is true?
A.
The Principle of Incremental Benefits says to consider thepossible ways to minimize the value lost to capital marketimperfections, such as asymmetric taxes, asymmetric information,and transaction costs.
B.
The Principle of Valuable Ideas suggests to look foropportunities to create value by issuing securities that are inshort supply, perhaps resulting from changes in tax law.
C.
The Time Value of Money Principle advises to include anytime-value-of-money tax benefits from capital structurechoices.
D.
all of these
Explanation / Answer
1)A AND C 2)BRelated Questions
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