1- Which one of the following statements would not be TRUE for a zero-leveraged firm?

1. There would be no tax shield.
2. L would be equal to U.
3. Firm value would be maximized.
4. WACC would be the cost of equity.

3- Suppose that a company's most recent dividends per share paid upon the last year's net income was 1,6 $. The share price of the company is fairly valued in the market at 10 $. The expected dividend growth rate is 2% in perpetuity. Given that the risk-free rate is 3% and market risk premium is 10%, what happens to the share prices when the whole market increases by 10%?

1. increase by 15,32%
2. increase by 11,79%
3. increase by 21,89%
4. increase by 15,00%