The MM theory with taxes implies that firms should issue maximum debt. In practice, this does not occur because: Group of answer choices the weighted average cost of capital is directly related to the debt-equity ratio. U. S. regulations require the debt-equity ratio of publicly-traded firms to be in the range of .3 to .7. the weighted average cost of capital is inversely related to the debt-equity ratio. debt is more risky than equity.

Which is cheaper: eating out or dining in? the mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04 (money.msn website, november 7, 2012). a sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal. a. develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home. b. using the sample from the 100 restaurants, what is the p-value? c. at a = .05, what is your conclusion? d. repeat the preceding hypothesis test using the critical value approach