A methodology that is normally used to examine the market reaction to firm-specific information events is called ___________.

Select one:

a. strong-form of market efficiency

b. random walk

c. technical analysis

d. event study

e. record of mutual funds

In the presence of financial distress, the value of a levered firm is equal to the unlevered firm value plus the present value of the tax shield of debt minus the present value of financial distress costs.

Select one:

True

False

Corporate investment decisions are for example determining the appropriate mix of debt and equity.

Select one:

True

False