Please answer this: You are given a new situation: Bob is a financial analyst. He used to work for company A. Bob noticed that company A is mostly financed by debt. Recently, he changed job and now working as a financial analyst for another company, company B. Company B has completely different culture than company A. Company B is mostly financed by equity. and a hint : The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2] An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. Please answer this question : For which company marginal benefit of increased debt is an issue?
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Answer: company A

Please answer this: You are given a new situation: Two farmers tried different methods of growing their crops. Nate used pesticides, while his buddy Don used bacterium that produces a toxin instead. Don was happy with the results. and a hint : There is growing concern regarding the use of pesticides in agriculture. Therefore, many of the current commercial applications of modern biotechnology in agriculture are focused on reducing the dependence of farmers on these chemicals. For example, Bacillus thuringiensis (Bt) is a soil bacterium that produces a protein that can act as an insecticide, known as the Bt toxin . But it is a naturally occurring protein, not a foreign chemical. Could this protein be used in crops instead of pesticides? Traditionally, an insecticidal spray has been produced from these bacteria. As a spray, the Bt toxin is in an inactive state and requires digestion by an insect to become active and have any effect. Crop plants have now been engineered to contain and express the genes for the Bt toxin, which they produce in its active form. When an insect ingests the transgenic crop, it stops feeding and soon thereafter dies as a result of the Bt toxin binding to its gut wall. Bt corn is now commercially available in a number of countries to control corn borer (an insect like a moth or butterfly), which is otherwise controlled by insecticidal spraying. Please answer this question : Which farmer used a naturally occurring protein, not a foreign chemical?
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Answer: Don

Please answer this: You are given a new situation: Andrew is thirsty and wants some cold water. He puts a bottle in the freezer but leaves it in too long so it freezes. Being impatient he then takes the bottle and runs it under soe hot water for a few minutes. and a hint : Changes of state from solid to liquid and from liquid to gas occur when matter gains energy. The energy allows individual molecules to separate and move apart from one another. It takes more energy to bring about these changes of state for polar molecules. Although hydrogen bonds are weak, they add to the energy needed for molecules to move apart from one another, so it takes higher temperatures for these changes of state to occur in polar compounds. This explains why polar compounds have relatively high melting and boiling points. The Table below compares melting and boiling points for some polar and nonpolar covalent compounds. Please answer this question : Which state is the water in the bottle after Andrew leaves it in the freezer too long solid or liquid?
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Answer:
solid