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NEW QUESTION: 1
A firm is considering undertaking a project requiring $7 million of new capital. The managers of the firm consider the prospects of the project having a 36% rate of return extremely likely, with a small probability that the project will not recover anything invested. The firm's current debt ratio is 70% and market analysts have estimated that the tax benefits from an increase in the debt level will be far smaller than the increase in bankruptcy costs. The Signaling Theory implies that the firm will try to raise _______ capital. The Trade- off Theory implies that the firm will try to raise _______ capital.
A. debt; debt
B. equity; debt
C. debt; equity
D. equity; equity
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Since additional debt does not create more benefits from tax shield than the losses anticipated due to increased bankruptcy costs, the Trade-off theory implies that the firm will try to raise equity capital for the project. On the other hand, since the prospects of the project are extremely favorable, Signaling Theory says that the firm would rather raise the capital through debt so that the profits from the project are shared on an equity basis only with the current shareholders.

NEW QUESTION: 2

A. Option B
B. Option D
C. Option C
D. Option A
Answer: D

NEW QUESTION: 3
You have been asked to provide a N+1 level of power redundancy in the new equipment room (ER) being designed with a Tier-II power supply. What should you do?
A. Provide two separate UPS systems with one serving the entire facility and the second on automatic power failure transfer to serve critical circuits only.
B. Provide two separate UPS units with an automatic power failure transfer to serve entire facility.
C. Provide two separate UPS units with each one serving half the equipment in the facility.
D. Provide a UPS that serves all of the equipment in the facility.
Answer: B

NEW QUESTION: 4
Your Exchange Server 2007 organization contains a single Hub Transport server named ExchHub1, and multiple Mailbox servers. A single Edge Transport server named ExchEdge1 is deployed. Message tracking logs are retained for 30 days. The mailbox for a user named Marc is located on a Mailbox server named ExchMB1 and has an SMTP address of [email protected]. You need to generate a report that indicates the total number of messages that Marc sent during the last 30 days. What should you do?
A. On ExchHub1, run the Get-MailboxFolderStatistics -Identity marc -FolderScope SentItems | export-csv c:\tmp\marc.csv cmdlet.
B. On ExchEdge1, run the Get-MessageTrackingLog -Sender [email protected] -EventId "Receive" | export-csv c:\tmp\marc.csv cmdlet.
C. On ExchHub1, run the Get-MailboxStatistics -Identity marc | export-csv -path c:\tmp\marc.csv cmdlet.
D. On ExchHub1, run the Get-MessageTrackingLog -Sender [email protected] -EventId "Receive" | export-csv c:\tmp\marc.csv cmdlet.
Answer: D

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