A. No
B. Yes
Answer: A
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NEW QUESTION: 1
A. No
B. Yes
Answer: A
NEW QUESTION: 2
Forwarding subclasses are only relevant to, and are therefore applied within the context of, a _____________policy.
A. slope
B. network
C. scheduling
D. network-queue
E. SAP-ingress
Answer: E
NEW QUESTION: 3
Which feature can you implement to protect against SYN-flooding DoS attacks?
A. TCP intercept
B. a null zero route
C. CAR applied to ICMP packets
D. the ip verify unicast reverse-path command
Answer: A
NEW QUESTION: 4
Assuming zero taxes, the effect of increasing leverage in the capital structure of a firm is to:
A. either increase, decrease or leave constant the value of the business depending upon other factors
B. Maintain the value of the business unaltered
C. Increase the value of the business as debt is cheaper than equity
D. Decrease the value of the business as debt is riskier than equity
Answer: B
Explanation:
Explanation
The value of a business derives itself from the value of its cash flows, and not its capital structure. However, the availability of tax deductions on debt allow increasing the value of the business to equity holders by using the tax shield.
In the absence of taxes, there is no such advantage. Even if debt is nominally priced lower than the cost of equity, substituting debt for equity makes the remaining equity more risky and increasing the cost of equity to offset any advantage gained from the lower cost of debt. Changing the capital structure does not change the value of the firm, and this in essence is the conclusion of the Modigliani-Miller theorem.