1. Which one of the following best describes the Modigliani& Miller theories on capital structure? a. Increasing the use of debt creates great wealth when the corp tax 0. b. Corporations should strongly avoid debt when corp tax-0. c. Corporation will likely to go into bankruptcy it D(D+S)> 0.5. d. Capital structure matters only because interest expense is tax deductible. 2. * What (specifically) are "free cash flows" for capital budgeting purposes? 3. "Describe how you would obtain the beta of IBM using historical price information