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NEW QUESTION: 1
The most commonly held view of capital structure, according to the text, is that the weighted average cost of capital ________.
A. increases proportionately with increases in leverage
B. increases with moderate amounts of leverage and then falls
C. none of these answers
D. first falls with moderate levels of leverage and then increases
E. does not change with leverage
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The optimal capital structure must strike a balance between risk and return which maximizes the firm's stock price. Using more debt raises the risk borne by stockholders, however, using more debt leads to a higher expected rate of return.

NEW QUESTION: 2
The problems which initiated the crisis at Northern Rock during the summer of 2007 were:
A. A general lack of confidence in mortgage backed securities associated in large part with developments in the US sub-prime mortgage market, and doubts emerging about the viability of the Northern Rock business model
B. A depositor run on the bank, following doubts about the viability of the Northern Rock business model
C. Doubts arising about the viability of the business model which necessitated Bank of England intervention
D. Large customer withdrawals despite the UK regulator and the UK Treasury giving assurances that the bank was solvent
Answer: A

NEW QUESTION: 3
What is displayed when you attempt to access a Web service by using a Web browser?
A. a directory listing of the Web service's application structure
B. a visual depiction of your preliminary connection to the Web service
C. a listing of methods that are available in the Web service
D. an error page explaining that you have accessed the Web service incorrectly
Answer: C
Explanation:
The server, in response to this request, displays the Web service's HTML description page.
The Web service's HTML description page shows you all the Web service methods supported by a particular Web service. Link to the desired Web service method and enter the necessary parameters to test the method and see the XML response.

NEW QUESTION: 4
The Lightweight Event Service provides an interface for --------------
A. storing events in an event channel, from which they are polled by listeners
B. an asynchronous, one-to-one, first-in, first-out (FIFO) event channel
C. suppliers to push events to an event channel, which in turn pushes events to consumers
D. event consumers to request (poll) events from event suppliers
Answer: C