C. reduce the conflict of interests between stockholders and bondholders. D. reduce the conflict of interests between the firm and its suppliers. What type of stock returns of firm and market do we often use in the CAPM (capital asset pricing model)? A. Dividend yields B. Current yields C. Nominal returns D. Real returns not lose the 20% of its market to any Tevenues for the new project? A. 80% of the total revenues of the new project B. 100% of the total revenues of the new project C. 120% of the total revenues of the new project D. None of the above (11) Utility firms tend to have high debt ratios because they are regulated, and their earnings stable. If the utility market is opened up to free competition, utility firms will have volati earnings. What change would you expect to see in the debt ratios? A. No change. B. Debt/capital ratios will be 100%. C. Debt ratios will go up. D. Debt ratios will go down