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IBM C1000-027
IBM OpenPages Developer Fundamentals v2
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NEW QUESTION: 1
Which of the following statements about capital structure theory is most correct?
A. None of the statements are correct.
B. Signaling theory suggests firms should in normal times maintain reserve-borrowing capacity which can be used if an especially good investment opportunity comes along.
C. In general, an increase in the corporate tax rate would cause firms to use less debt in their capital structures.
D. According to the "trade-off theory," a decrease in the costs of debt would lead firms to increase equity financing in their capital structures.
E. All of the statements are correct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
An increase in the corporate tax rate reduces the after-tax cost of debt making it more attractive relative to equity. Thus, firms might be expected to use more debt. The trade-off theory of leverage states a firm trades off the benefits of debt financing (favorable corporate tax treatment) against the higher interest rates and bankruptcy costs.
NEW QUESTION: 2
Processing dividend payout in Mutual Funds is role of
A. Trustee
B. Registrar & Transfer Agent
C. AMC
D. Sponsor
Answer: B
NEW QUESTION: 3
In practice, companies who use the direct method in presenting cash flows from operations:
A. must also disclose cash flows from operations using the indirect method.
B. must be privately held or closely held corporations.
C. are not required to report cash flows not incurred during the ordinary course of business.
D. must classify interest paid as an investing activity.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The advantage of the indirect method is it reconciles differences between net income and cash flows from operating activities.
NEW QUESTION: 4
In future, your sales representatives should be able to maintain freight costs as condition records based on the sales organization, distribution channel, incoterms (part 1), and destination country. At present, this level of maintenance is not supported at all in your system.
Which object do you need to maintain in Customizing to allow this feature in condition maintenance?
A. Pricing procedure
B. Condition type
C. Condition table
D. Access sequence
Answer: C
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IBM C1000-027
IBM OpenPages Developer Fundamentals v2
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