23) A debenture is 23) A) secured by equipment owned by the firm B) unsecured Q) secured by property owned by the firm. D) secured by other securities held by the firm 24) The process of polling potential investors regarding their interest in a forthcoming initial 24) public offering (IPO) is called A) book building B) customer identification c) interest building D) market analysis 25) A firm reports EBIT of $100 million. The income statement shows depreciation of $2025 ) million. If the tax rate is 35% and total capital expenditures and increases in working capital total $10 million, what is the free cash flow to the firm? A) 557 B) $75 C) $95 D) $65 26) Flanders, Inc., has expected eamings of $4 per share for next year. The firm's ROE is 8%, and its earnings retention ratio is 40%. If the firm's market capitalization rate is 15%, wEat is the present value of its growth opportunities? A) $0 B) $6.33 c) $26.67 D) $20.34 27 The semistrong form of the EMH states that must be reflected in the current 27 stock price. A) all pablicly available information B) all information, including inside information Q) all costless information D) all security price and volume data 28) Which of the following statistics cannot be negative? A) correlation coefficient B) covariance C) E(r) D) variance 29) The duration of a bond normally increases with an increase in: I. Term to maturity II. Yield to maturity III. Coupon rate A) I and II only B) I, II, and C) I only D) II and II only