You are conducting an experiment inside a train car that may move horizontally along rail tracks. A load is hung from the ceiling on a string. The load is not swinging, and the string is observed to make a constant angle of 45 degrees with the horizontal. No other forces are acting on the load. Which of the following statements are correct?
Check all that apply.
A. The train is an inertial frame of reference.
B. The train is not an inertial frame of reference.
C. The train may be at rest.
D. The train may be moving at a constant speed in a straight line.
E. The train may be moving at a constant speed in a circle.
F. The train must be speeding up.
G. The train must be slowing down.
H. The train must be accelerating.
"Which of the following statements are correct? "
We don't see the statements, probably because you tried to cut and paste, which doesn't work most of the time. You'll need to type them up manually, sorry.
1. Which of the following are legal and acceptable reasons for the high level of merger activity in the
U.S. during the 1980s?
a. Synergistic benefits arising from mergers.
b. A profitable firm acquires a firm with large accumulated tax losses that my be carried forward.
c. Attempts to stabilize earnings by diversifying.
d. Purchase of assets below their replacement costs.
e. Reduction in competition resulting from mergers.
2. Which of the following statements about valuing a firm using the APV approach is most
CORRECT?
a. The value of operations is calculated by discounting the horizon value, the tax shields, and
the free cash flows at the cost of equity.
b. The value of equity is calculated by discounting the horizon value, the tax shields, and the
free cash flows at the cost of equity.
c. The value of operations is calculated by discounting the horizon value, the tax shields, and
the free cash flows before the horizon date at the unlevered cost of equity.
d. The value of equity is calculated by discounting the horizon value and the free cash flows at
the cost of equity.
e. The APV approach stands for the accounting pre-valuation approach.
3. Which of the following statements is most CORRECT?
a. If a company that produces military equipment merges with a company that manages a chain
of motels, this is an example of a horizontal merger.
b. A defensive merger is one where the firm's managers decide to merge with another firm to
avoid or lessen the possibility of being acquired through a hostile takeover.
c. Acquiring firms send a signal that their stock is undervalued if they choose to use stock to
pay for the acquisition.
d. Cash payments are used in takeovers but never in mergers.
e. Managers often are fired in takeovers, but never in mergers.
1. Chapter 7 of the Bankruptcy Act is designed to do which of the following?
a. Protect shareholders against creditors.
b. Establish the rules of reorganization for firms with projected cash flows that eventually will be
sufficient to meet debt payments.
c. Ensure that the firm is viable after emerging from bankruptcy.
d. Allow the firm to negotiate with each creditor individually.
e. Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and
allow insolvent debtors to discharge all of their obligations and to start over unhampered by a
burden of prior debt.
2. Which of the following statements is most CORRECT?
a. Our bankruptcy laws were enacted in the 1800s, revised in the 1930s, and have remained
unaltered since that time.
b. Federal bankruptcy law deals only with corporate bankruptcies. Municipal and personal
bankruptcy are governed solely by state laws.
c. All bankruptcy petitions are filed by creditors seeking to protect their claims against firms in
financial distress. Thus, all bankruptcy petitions are involuntary as viewed from the perspective
of the firm's management.
d. Chapters 11 and 7 are the most important bankruptcy chapters for financial management
purposes. If a reorganization plan cannot be worked out under Chapter 11, then the company
will be liquidated as prescribed in Chapter 7 of the Act.
e. "Restructuring" a firm's debt can involve forgiving a certain portion of the debt, but it cannot call
for changing the debt's maturity or its contractual interest rate.
3. Which of the following statements is most CORRECT?
a. The primary test of feasibility in a reorganization is whether every claimant agrees with the
reorganization plan.
b. The basic doctrine of fairness states that all debtholders must be treated equally.
c. Since the primary issue in bankruptcy is to determine the sharing of losses between owners
and creditors, the "public interest" is not a relevant concern.
d. While a firm is in bankruptcy, the existing management is always allowed to retain control,
though the court will monitor its actions closely.
e. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive
through reorganization depends on a determination of the value of the firm if it is rehabilitated
versus the value of its assets if they are sold off individually
To determine which statements are correct, let's analyze the situation and apply Newton's laws of motion.
In this scenario, the load is hanging from the ceiling on a string, and it is observed to make a constant angle of 45 degrees with the horizontal. The fact that the load is not swinging implies that there is no net force acting on it in the horizontal direction. This means that the horizontal component of the tension in the string must be balancing the train's horizontal acceleration or deceleration.
Now let's examine each statement:
A. The train is an inertial frame of reference.
An inertial frame of reference is a frame in which Newton's laws of motion are valid and there are no net forces acting. Since the load is not swinging, it indicates that there are no net forces acting horizontally, making the train an inertial frame of reference. Therefore, statement A is correct.
B. The train is not an inertial frame of reference.
Since the load is not swinging and there are no net forces acting horizontally, the train can be considered an inertial frame of reference. Therefore, statement B is incorrect.
C. The train may be at rest.
If the train is at rest, there would be no horizontal acceleration or deceleration. Since the load is not swinging, it indicates that there are no net forces acting horizontally, which is consistent with the train being at rest. Therefore, statement C is correct.
D. The train may be moving at a constant speed in a straight line.
If the train is moving at a constant speed in a straight line, it implies that there is no horizontal acceleration or deceleration. Since the load is not swinging, it indicates that there are no net forces acting horizontally, which is consistent with the train moving at a constant speed in a straight line. Therefore, statement D is correct.
E. The train may be moving at a constant speed in a circle.
Since there is no swinging motion of the load, it indicates that there are no net forces acting horizontally. Therefore, it is not possible for the train to be moving at a constant speed in a circle since circular motion requires a centripetal force directed toward the center of the circle. Therefore, statement E is incorrect.
F. The train must be speeding up.
Since the load is not swinging and there are no horizontal forces acting on it, it implies that the horizontal acceleration or deceleration of the train is zero. Thus, the train does not necessarily have to be speeding up. Therefore, statement F is incorrect.
G. The train must be slowing down.
Since the load is not swinging and there are no horizontal forces acting on it, it implies that the horizontal acceleration or deceleration of the train is zero. Thus, the train does not necessarily have to be slowing down. Therefore, statement G is incorrect.
H. The train must be accelerating.
Since the load is not swinging and there are no horizontal forces acting on it, it indicates that the horizontal acceleration or deceleration of the train is zero. Therefore, the train does not necessarily have to be accelerating. Therefore, statement H is incorrect.
In summary, the correct statements are: A. The train is an inertial frame of reference. C. The train may be at rest. D. The train may be moving at a constant speed in a straight line.