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choose the right one and justify why ? 6- If EBIT is $400, interest expenses is $150, tax rate 40%, and number of shares I

choose the right one and justify why ?

6- If EBIT is $400, interest expenses is $150, tax rate 40%, and number of shares I 100 shares, the EPS is : a. $2.5 b. $1.5 c. $1 d. $1.75 7- The increase of debt ratio in the capital structure will cause: a. Increase in EPS b. Decrease in EPS c. Increase in risk d. Both a and c. 8- The increase of debt ratio in the capital structure will cause: a. Increase in value of the firm b. Decrease in the value of the firm c. There is no clear impact on value of the firm 9- A bond has the following features: par value is $1500, coupon rate 10%, market interest rate 10%. The fair value of the bond is equal to: a. Par value b. Higher than par value c. Lower than par value. 10- Zero coupon bond is like to corporate bond and earns : a. Fixed interest rate. 4 b. Floating interest rate. c. Inverse interest rate. d. No one of the above.

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