7. 8.

In a perfect market with no tax, floatation or transaction costs, financial leverage affects the risk and expected return on a firm's: Select one a debt Ob equity. c. assets od debt and equity Which of the following is NOT a method for changing the management of a firm? Select one: Oa. A leveraged buyout of the firm by a private group of investors. ob. A successful proxy contest in which a group of shareholders vote in a new board of directors who then pick a new management team. OC. A stock repurchase. Od A takeover of one firm by another firm