1 points State Which of the following statements is most correct? O Managers who face the threat of hostile takeover are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeover O Because of their size, it is easier for sole proprietorships and partnerships to raise outside capital than it is for a corporation Corporations face fewer regulations and taxes relative to sole proprietorship and partnership O Corporations are taxed more favorably than sole proprietorships. One advantage to form a corporation is that the owners of the corporations have limited liability A firm has a debt/equity ratio of 50 percent. Currently, it has interest expense of $500,000 on 55,000,000 of total debt outstanding. Its tax rate is 40 percent of the firm's AOA 156 percent, by how many percentage points is the firm's ROE greater than its ROA? 0 5.2 O 7.4% 9.00 OO. Which one of the following is a source of cash? O purchase of inventory O granting credit to a customers O repurchase of common stock O acquisition of debt payment to a supplier