1-One of the following is NOT an indicator of financial risk

A-Debt to equity ratio

B-Times interest earned ratio

C-Debt to assets ratio

D-Accounts receivable ratio

2-Debt will always cost less than equity because

A-Interest is tax deductible

B-Equity securities are less risky

C-Tax is not included in Equity

D-All of the above

3-Capital structure is irrelevant because

A-The cost of capital changes as capital structure changes.

B-Quantity of debt falls, the return demanded by the shareholder increases

C-The market value of the firm is independent of capital structure.

D-The capital structure cohabit with market value of the firm