Which ofthe following is correct MM propostion in a world oftaxes is based on the assumption that corporate taxes are lower than personal taxes MM proposition in a Iworld of taxes is based on the assumption that corporate taxes are equal to personal taxes When both corporate and personal taxes are considered. the value of the firm initially declines with debt and then starts to increase. When both personal and corporate taxes are considered.debt nancing no longer increases the value of the rm When both personal and corporate taxes are considered. debt financing still increases rm value but to a lesser extent compared to when personal taxes are zero Homework: HW Ch. 18 Score: 0 of 1 pt 2 of 29 (23 complete) Concept: Balance of Trade Which one of the following does not describe balance of trade? O A. Balance of trade is the largest item in the current account. O B. Balance of trade is the difference between the value of goods a country exports and the value of goods a country imports. C. Balance of trade shows when imports are larger than exports, there is a trade deficit. O D. Balance of trade is equal to the sum of current account balance and financial account balance. Click to select your answer and then click Check Answer. Clear All All parts showingQUESTION 1 All risk that stockholders bear should be compensated with higher expectations for returns True False. Only firm risk compensates through higher expected returns @ False. Only market risk compensates through higher expected returns O False. Only interest rate risk compensates through higher expected returns QUESTION 2 For the majority of stocks, what percentage of their returns fall between 1 and 2 standard deviations away from their average return? O About 13.5% Greater than 27% O Less than 27% About equal to 27%d. economic growth. Question 8 Not yet answered Points out of 1 Flag question GDP growth on a year-to-year basis is called Select one: a. real growth. O b. long-term growth. O c. nominal growth. O d. short-term growth. Question 9 Not yet answered Points out of 1 Flag question3/4 9. All other things equal, consumer surplus is higher when the demand curve is more ; producer surplus is greater when the supply curve is more A) inelastic, elastic B) inelastic, inelastic C) elastic, elastic D) elastic, inelastic 10. The First Fundamental Theorem of Welfare Economics states that: A) the competitive equilibrium, where supply equals demand, can always be achieved through government intervention