can someone please answer these for me. 7-40

7. Which of the following is NOT an assumption of the Miller & Modigliani theorem? A. Investors can borrow and lend at the same rate that corporations can B. Capital markets are perfect C. Information asymmetries exist between management and stockholders D. No taxes E. All of the above are assumptions of the Miller & Modigliani theorem 8. Tetroid Corporation has $51 million worth of debt. The company pays a corporate tax rate of 17%. There are no personal taxes on debt or equity income. What is the present value of Tetroid's interest tax shield? A. $3 million B. $300 million C. $8.67 million D.S17 million E. None of the above 9. Sponsyllo Corp has debt of $15 million that pays an interest rate of 8%, equity of $5 million, and the required return on assets is 12%. The company does not pay any taxes. What is Sponsyllo's cost of equity? A. 20% B. 12% 14% C. D. 8 2/3% E. None of the above. 10. If a Corporation must pay income taxes, the Miller & Modigliani model predicts that Capital structure is irrelevant A. B. Capital structure is important: Tax advantage for debt over equity C. Capital structure is important: Tax advantage for preferred stock D. Both A and C E. None of the above 11. According to Miller, if personal taxes on income from stocks increase, holding all else equal, then A. Gains from leverage will increase B. Gains from leverage will decrease C. The effects of changes in leverage are uncertain D. The personal tax rates on interest income are irrelevant E. None of the above 12. According to the textbook, companies that have large amounts of nondebt tax shields A. Should not use much debt financing compared with other companies B. Should use more debt financing than other companies C. Should use debt financing with higher interest rates D. Both B and C E. All of the above 13. Why is debt financing referred to as "leverage"? A. It pulls management's levers B. It levels all firms to a common basis C. It magnifies the return on equity of a firm D. Both A and B E. None of the above 14. How do firms know their optimal debt/equity ratio? A. The ratio where Weighted Average Cost of Capital is maximized B. The ratio where Weighted Average Cost of Capital is minimized C. Optimal debt/equity ratio is always zero D. Optimal debt/equity ratio is one E. None of the above 15. Why does the marginal benefit of debt decline as the amount of debt on a firm's balance sheet rise? A. More debt means lower interest expense and lower probability of losses B. More debt means higher interest expense and higher probability of losses C. More debt means less deductibility per IRS codes D. More debt means greater likelihood of being delisted from a stock exchange E. None of the above 16. Which of the following are examples of indirect bankruptcy costs? A. Attorneys fees B. Accountants fees C. Loss of customers D. Administrative costs E. None of the above 22. What is "Asset Substitution"? A. Investing in a current asset instead of a long-term asset B. Investing in a foreign country rather than in the USA C. Investing in a risky asset rather than in a safe asset as promised D. Investing in futures contracts rather than forward contracts E. None of the above 23. What is the "Signaling Theory"? A. Management will avoid using debt if they are confident about the company B. Management will pay extra taxes to the IRS just to show their liquidity C. Management will select its leverage level to show they are financially strong enough to handle high debt D. Management will avoid the use of debt tax shields E. None of the above 24. How do bankruptcy costs affect the capital structure decision? A. Induce firms to have lower leverage B. Induce firms to have higher leverage C. No effect on leverage D. Induce firms to issue less preferred stock E. None of the above 25. Qualkonk Corporation paid dividends of $2 per share and had earnings per share of S8 in 2016. It has debt tax shields of $5 per share. What is Qualkonk's dividend payout ratio? A. 4 B.0.4 C. 0.625 D. 0.25 E. None of the above 26. Megabub Corporation has 4 million shares outstanding and earned $48 million in 2016. It paid a total of $8 million in dividends during the year. What is Megabub's dividend payout ratio? Round your answer to the second decimal place A.0.17 B. 0.50 C. 2.00 D. 0.08 E. None of the above 27. Larchmount Manufacturing, Inc. had a dividend payout ratio of 40% in 2014. It earned $20 million that year and had 5 million shares outstanding. What is Larchmount's dividend payment per share for that year? A. 40% B. $1.60 C. S4 D. 50.25 E. None of the above 28. A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock split. After the reverse split, the market price goes to $11 per share. How much have the stockholders gained or lost from the reverse split? A. Gained $1,100,000 B. Gained $100,000 C. Zero D. Gained $20,000 E. None of the above 29. Why do corporations sometimes split their stock? A. So investors won't have to pay extra for odd lots B. To get their stock price into a range where stockholders can buy round lots C. To avoid extra taxes on high stock prices D. To avoid drawing undue attention on their company E. None of the above 30. Why do companies like to smooth their dividend payments over time? A. To be conservative and not raise them unless they are certain they can keep paying them B. To transfer wealth from bondholders to stockholders C. To minimize volatility of their long-term assets D. To moderate the political process E. None of the above 31. Why do stock prices usually drop on a company's ex-dividend date? A. Paying a dividend is bad news B. They will no longer be able to deduct the dividend on their corporate tax return C. The company no longer owns the amount of cash paid as the dividend D. Investors wish their cash tied up for less than 2 days E. None of the above 32. Which of the following are true? A. A company's stock price usually drops when it stops repurchasing its own stock B. A company's stock price usually drops when it announces it is increasing its dividend C. A company's stock price usually drops when it announces it is eliminating its dividend D. Both A and C E. None of the above 33. Why might a company do a reverse stock split? A. Its stock price is so low it might get delisted from its exchange B. Its stock price is too low to do share repurchases C. Its stock price is too high for investors to buy round lots D. Its stock price is too high to attract attention from stock analysts E. None of the above 34. Why might a firm repurchase its own stock? A. It has a shortage of cash B. Its share price is too high C. Its EPS is too high D. It cannot compute its return on equity E. None of the above 35. Which of the following is (are) true about dividend changes? A. Dividend changes follow changes in the Federal Reserve's target rate B. Dividend changes follow shifts in long-run sustainable camings C. Management are reluctant to increase dividends if they might need to be cut later D. Both Band C E. All of the above 36. In the Miller-Modigliani world of perfect capital markets A. Dividend changes are important B. Dividend changes are irrelevant C. Interest rate swaps are profitable D. Stock options are highly profitable E. None of the above 37. Wintergrin Corporation has 54 million in cash and 400,000 shares of stock outstanding. It announces a 10% stock dividend. What will its stockholders receive? A. $400,000 cash B. $4 million cash C. 40,000 more shares of stock D. Nothing E. All of the above 38. What is the advantage for stockholders of share repurchases over dividends? A. Stockholders can defer receipt of cash dividends B. Stockholders can wait to sell their stock back to the company until it is advantageous C. Stockholders do not have to pay capital gains taxes on share repurchases 8.50.17 C. 50.50 D. Stockholders do not have to pay taxes on cash dividends E. All of the above 39. Honjammer Inc. paid $14 million in dividends in 2016, during that year it had $42 million in earnings and 7 million shares outstanding. What is its dividends per share? A. 90.33 D. $2.00 E. None of the above 40. What happened after the tax rate on dividends was cut in 2003 A. The Astros won the World Series B. The member of new dividend initiations by US firms increased significantly C. Many firms cut their dividends D. Dividend payouts remained constam E. None of the above