7. Which of the following statements is FALSE? A) Debt holders are not foolish—they recognize that when the firm defaults, they will not be able to get the full value of the assets. As a result, they will pay less for the debt initially. B) The costs of financial distress represent an important departure from Modigliani and Miller's assumption of perfect capital markets. C) Levered firms risk incurring financial distress costs that reduce the cash flows available to investors. D) When securities are fairly priced, the original shareholders of a firm pay the future value of the costs associated with bankruptcy and financial distress.

Acompany factory is considered which type of resource a.land b.physical capital c.labor d.human capital

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1

Bruno's pizza restaurant makes full payment of $8,300 on an account payable to stella's cheese co. stella's would record this transaction with a