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3262. The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by __________.

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Traditional approach
Net operating income approach
Net income approach
MM approach
✅ The correct answer is C.
The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by Net income approach. Net Income Approach suggests that value of the firm can be increased by decreasing the overall cost of capital (WACC) through higher debt proportion.

3263. To whom does the Treasurer most likely report?

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Chief Financial Officer
Vice President of Operations
Chief Executive Officer
Board of Directors
✅ The correct answer is A.
To Chief Financial Officer, the Treasurer most likely report. The chief financial officer (CFO) is the officer of a company that has primary responsibility for managing the company’s finances, including financial planning, management of financial risks, record-keeping, and financial reporting.

3264. The random walk hypothesis is most related to the___________.

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weak-form EMH
semi strong-form EMH
semi weak-form EMH
strong-form EMH
✅ The correct answer is A.
The random walk hypothesis is most related to the weak-form EMH. Weak form efficiency, also known as the random walk theory, states that future securities’ prices are random and not influenced by past events. Advocates of weak form efficiency believe all current information is reflected in stock prices and past information has no relationship with current market prices.

3268. What is a type of virus that spreads itself, not just from file to file, but from computer to computer via e‐mail and other Internet traffic?

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Computer virus
Worm
Denial‐of‐service attack
None of the above
✅ The correct answer is B.
Worm is a type of virus that spreads itself, not just from file to file, but from computer to computer via e‐mail and other Internet traffic. A computer worm is a standalone malware computer program that replicates itself in order to spread to other computers.