Can you please give me just the answers for these 4 questions ?
30) Which of the following statements is FALSE? analysts prefer to use performance measures and valuation multiples that are based on the firm's earnings before interest has been deducted. price-eamings ratio are affected by leverage implies that we can always reliably compare these measures across rims ably compare these measures across firms with different capital structures. The money taken in by the firm as a result of the share issue exactly offsets the dilution of the shares. D) In general, as long as the firm sells the new shares of equity at a fair price, there will be no gain or loss to shareholders associated with the equity issue itself. 1) Which of the following statements is FALSE? A) The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receive--namely, the cash flows the investor will receive before all taxes have been paid. B) The actual interest tax shield depends on the reduction in the total taxes (both corporate and personal) that are paid. C) Just like corporate taxes, personal taxes reduce the cash flows to investors and diminish firm value. D) Personal taxes have the potential to offset some of the corporate tax benefits of leverage. DJ LVL II 4) Which of the following is NOT one of Modigliani and Miller's set of conditions referred to as perfect capital markets? A) All investors hold the efficient portfolio of assets. B) A firm's financing decisions do not change the cash flows generated by its investments, nor do they reveal new information about them. C) There are no taxes, transaction costs, or issuance costs associated with security trading. D) Investors and firms can trade the same set of securities at competitive market prices equal to the present value of their future cash flows. 21) Which of the following statements is FALSE? A) A firm receives a tax benefit only if it is paying taxes in the first place. B) Increasing the level of debt increases the probability of bankruptcy. C) Aside from taxes, another important difference between debt and equity financing is that debt payments must be made to avoid bankruptcy, whereas firms have no similar obligation to pay dividends or realize capital gains. D) To the extent that a firm has other tax shields, its taxable earnings will be increased and it will rely more heavily on the interest tax shield. 30) Which of the following statements is FALSE? analysts prefer to use performance measures and valuation multiples that are based on the firm's earnings before interest has been deducted. price-eamings ratio are affected by leverage implies that we can always reliably compare these measures across rims ably compare these measures across firms with different capital structures. The money taken in by the firm as a result of the share issue exactly offsets the dilution of the shares. D) In general, as long as the firm sells the new shares of equity at a fair price, there will be no gain or loss to shareholders associated with the equity issue itself. 1) Which of the following statements is FALSE? A) The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receive--namely, the cash flows the investor will receive before all taxes have been paid. B) The actual interest tax shield depends on the reduction in the total taxes (both corporate and personal) that are paid. C) Just like corporate taxes, personal taxes reduce the cash flows to investors and diminish firm value. D) Personal taxes have the potential to offset some of the corporate tax benefits of leverage. DJ LVL II 4) Which of the following is NOT one of Modigliani and Miller's set of conditions referred to as perfect capital markets? A) All investors hold the efficient portfolio of assets. B) A firm's financing decisions do not change the cash flows generated by its investments, nor do they reveal new information about them. C) There are no taxes, transaction costs, or issuance costs associated with security trading. D) Investors and firms can trade the same set of securities at competitive market prices equal to the present value of their future cash flows. 21) Which of the following statements is FALSE? A) A firm receives a tax benefit only if it is paying taxes in the first place. B) Increasing the level of debt increases the probability of bankruptcy. C) Aside from taxes, another important difference between debt and equity financing is that debt payments must be made to avoid bankruptcy, whereas firms have no similar obligation to pay dividends or realize capital gains. D) To the extent that a firm has other tax shields, its taxable earnings will be increased and it will rely more heavily on the interest tax shield
