1. Because stockholders bear the risk of increasing financial leverage, the cost of equity also increases. T F
2. A Companies Book debt ratio is lower than market debt ratio T F
3. Venture capital companies know that managers will work harder if they are assured of a good steady salary T F
4. The ANT IPO is the largest IPO that has been issued. T F
5. For each of the following issues which issue is likely to have lower proportion costs. A. Large issue or small issue B. Bond issue or common stock issue
6. The value of the firm does not depend on the fraction of debt versus equity financing T F
7. What are the three factors that make up total capitalization of the firm. ( A. B. C.)
8. Companies decide each years dividend by looking at their CAPEX budget requirements then distributing whatever cash is leftover. T F
9. A green knight is a target companys attempt to avoid an unfriendly takeover by offering to sell out to a friendly buyer T F
10. Apples debt issue due February 9, 2045 is a non-callable issue T F