Assume Congress passes a new law that raises taxes on individual dividends and realized capital gains.   Assume the new law also increases the federal corporate tax rate from 21% to 28%.  Based on our knowledge of tradeoff theory, the theoretical impact of the new law would be for firms to a) Increase debt relative to equity from current levels  (higher (D/E) b) Decrease debt relative to equity from current levels (lower D/E) c) keep debt levels about the same (same D/E)

Mis hermanos __________________ al beisbol. (used to play)

  In exchange for / substitution

Mis primos ______________  la costa de Maine bien porque siempre pasan las vacaciones de verano en Bar Harbor.

  Hay más de quinientos ____________________ en América Latina, cada uno con su propia historia y cultura, y muchos todavía hablan las lenguas de sus antepasados precolombinos.

A firm has previously not issued secured debt.  If a firm decides to now seek loans that are secured by property of the firm, this may increase the odds of getting a loan and/or result in a lower interest rate on the loan because a) It facilitates better outcomes for lenders with respect to collection of money owed to the lender in bankruptcy b) Lenders who doubt the firm’s ability to pay off loans out of cash flows know that the property securing their loan can be sold to pay off the loan. c) all the above d) none of the above

Cuando mi hermana tenía cinco años, __________ pero muy feliz. (she was shy)

Match the phrases and sentences.

Marta quiere ____________ un país en Africa.

George W. Bush (hijo) fue presidente de los Estados Unidos por 8 años.