44 How much will a firm need in cash flow before tax and interest to satisfy debt holders and equity holders if the tax rate is 40%, there is $10 million in common stock requiring a 12% return, and $6 million in bonds requiring an 8% return? (Use the values in dollar) d out of question Select one: O a $2,800,000 Ob $1,488,000 . $1,392,000 Od 52.480,000 47 The efficient market hypothesis states that Out of question Select one: O a. markets price securities fairly at all times and that new information is rapidly reflected in the price. O b. requiring firms to issue more stock will reduce volatility O c. requiring investors to hold securities longer will reduce volatility. Od taxing security returns will raise prices. 48 Capital markets have maturities of one year or less. od Select one out of True question False