Top Posters
Since Sunday
t
7
m
6
k
6
F
5
j
5
t
5
j
5
G
5
f
5
a
5
d
5
c
5
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
aryaelfkind aryaelfkind
wrote...
Go to Answer
Posts: 147
Rep: 0 0
8 months ago
Which statement concerning capital structure theory is correct?


▸

According to signalling theory, a stock issue sets off a positive signal, while using debt is a negative signal.



▸

Signalling theory suggests that a firm should try to use more debt in “normal” times than the MM trade-off theory would suggest.



▸

Signalling theory suggestsfirmsshouldinnormaltimesmaintainreserveborrowing capacity thatcanbe usedif anespecially good investmentopportunitycomesalong.



▸

Many of the corporate takeovers and leveraged buyouts in recent years were designed to improve efficiency by increasing the cash flow available to managers.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
Read 90 times
1 Reply
Replies
Answer verified by a subject expert
clarkh7839clarkh7839
wrote...
#1
Posts: 132
Rep: 0 0
8 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

aryaelfkind Author
wrote...

8 months ago
This site is awesome
kater28
wrote...

Yesterday
Thanks for your help!!
Evolution
wrote...

2 hours ago
this is exactly what I needed
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1064 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1683
  
 213
  
 654
Your Opinion
Which country would you like to visit for its food?
Votes: 214
Previous poll results: Should Ph.D.'s be addressed as doctors?