(10) Despite the fact that debt provides tax benefits to a firm, debt also puts pressure on the firm to: A) meet interest and principal payments, which if not met can put the company into financial distress. B) make dividend payments, which if not met can put the company into financial distress. C) make dividend payments, which if not met can put the company into financial distress; and to meet both interest and dividend payments, which when met increase the firm cash flow. D) meet both interest and dividend payments, which when met increase the firm cash flow; and to meet increased tax payments, thereby increasing firm value. (11) The market value of BlackRock's equity is 20000, and it borrows 7500 at 8 percent. What is the firm's cost of equity of capital if the unlevered cost of equity is 16 percent? A) 8.0% B) 3.0% C) 19.0% D) 24.0% (12) Which of the following is true, according to the pecking order theory of capital structure? A) if two firms are equally profitable, the more rapidly growing firm will end up borr more, other things equal. B) firms prefer equity to debt financing. C) firms prefer financing by debt versus internally generated cash. D) high-risk firms will end up borrowing more