A. Yes
B. No
Answer: B
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NEW QUESTION: 1
A. Yes
B. No
Answer: B
NEW QUESTION: 2
Forwarding subclasses are only relevant to, and are therefore applied within the context of, a _____________policy.
A. network
B. SAP-ingress
C. network-queue
D. slope
E. scheduling
Answer: B
NEW QUESTION: 3
Which feature can you implement to protect against SYN-flooding DoS attacks?
A. a null zero route
B. TCP intercept
C. the ip verify unicast reverse-path command
D. CAR applied to ICMP packets
Answer: B
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. Increase the value of the business as debt is cheaper than equity
C. Maintain the value of the business unaltered
D. Decrease the value of the business as debt is riskier than equity
Answer: C
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.