1 As a fund manager, building your stock portfolio by first analyzing and choosing individual stocks is a _______ strategy?

Green shoe option

Long Only

Bottom Up

Red herring

2

If we consider the tax advantage of issuing debt which of the following is true?

Equity is always more favorable to finance with than debt for the firm

WACC can be reduced by issuing more debt

Raising capital through debt is never advantageous for the firm

Capital structure is irrelevant to WACC