1. What is going on at CPK? What decisions does Susan Collyns face? In what ways can she facilitate the success of CPK? What do you recommend? 2. Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? 3. Is the capital structure decisions relevant for maximizing the shareholders' value? What is the ratio of debt-to-equity that maximizes the shareholder's value? Why should the stockholders care about maximizing firm value? Shouldn't they be interested in strategies that maximize shareholder value only? What are the key drivers for increasing value of CPK how it affects its capital providers i.e. shareholders and creditors. 4. How does debt add value to CPK