14. A financial analyst is least likely to use a free cash flow model to walue firm's equity a. The firm pays no dividends. b. Growth rates in dividends fall gradually over time C. The firm pays a stable dividend that is substantially lower than its earnings d. Estimating the value of the firm as a potential takeover candidate fach account is reported on a per 15. Compute the free cash flow to equity for a firm with the following conditie share basis): Net Income $14.10 Depreciation $4.31 Proceeds from a Bond Issue $3.11 Total Debt Repayments Change in Net Working Capital $0.00 $0.19 a $12.71. b. $15.11. c. $21.33 d. $25.92 16. What is the term used to describe the increase in EPS variability from the use of debt? a Combined leverage. b. Business risk. c. Financial risk. d. Operating leverage 17. Troy Co.'s EBIT increases by 25%. If Troy Co. has a degree of financial leverage (DFL) of 2.0, what is the expected change in earnings per share (EPS)? a. 12.5% b 25.0%. c. 50.0% d 62.5% 18. Troy Co.'s sales increase by 15%. If Troy Co. has a degree of operating leverage (DOL) of 3.0, what is the expected change in EBIT? a 5% b. 15% c 30% d. 45%. proportion of debt will have a relatively degree of 19. A firm's capital structure that consists of a relatively_ financial leverage. a. Small, high. b. Large, high c Large, constant. d. Small, constant