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1. Market efficiency "rationalist" has been the dominate theory underlying Business and Government Policy for approximately the last 5 or 6 decades. One implication is that although market crashes can occur, they are not predictable. Understanding behavioral finance changes this conclusion.

a) True b) False

2. How does the deductibility of interest and dividends by the paying corporation affect the choice of financing (that is, the use of debt versus equity)? what is the significance of crossover point?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92800083

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