1- Is the Stability of Leverage Ratios Determined by the Stability of the Economy? 2- Describe the effect of capital structure on a company. 3- The Capital asset pricing model (CAPM) is a very useful model and it is used widely in the industry even though it is based on very strong assumptions. Discuss in the light of recent developments in the area. 4- Do you agree that corporate managers would manipulate their stocks value prior to a buyback, or do you believe that corporations are more likely to initiate a buyback to enhance shareholder value? 5- Why dont firms generally use both a short- and long-run weighted average cost of capital?