1) Which of the following is NOT a factor for determining whether to use the active or passive approach to capital structure changes?

How strongly and how quickly they wish to change the capital structure

How quickly the firm is growing

How much the firm faces in debt costs under the active management approach

2) How can an investor leverage itself more than the firm?

By borrowing money and investing it in stock along with the money with which they started

By buying the firm's preferred stock

By buying the firm's bonds

Investors cannot leverage themselves more than the firm