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hi!!please solve ASAP!!! b. Short Questions: i. Why should financial manager choose the capital structure that maximizes the value of the firm? ii. What is
hi!!please solve ASAP!!!
b. Short Questions: i. Why should financial manager choose the capital structure that maximizes the value of the firm? ii. What is the impact of financial leverage on shareholders? iii. The decision rule for the IRR is that a project is acceptable if the IRR is greater than or equal to the cost of capital. Why is the cost of capital the appropriate interest rate for the decision rule? iv. Why do investors and managers adjust the cost of debt to an after-tax basis but do not similarly adjust the cost of equity? Why is profit maximization inferior to wealth maximization as a firm goal? What features of preferred stock make it a hybrid of common stock and bonds? V. viStep by Step Solution
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