I'd like the questions in his document to be answered correctly.

The Pecking Order Theory of capital structure rests on an assumption of Agency costs Barriers to entry Asymmetric information Tax shields and cost of financial distress Which of the following are equivalent under M&M proposition I? Maximizing firm value and maximizing firm profit Maximizing firm value and minimizing the cost of capital Minimizing firm's cost of capital and minimizing firm's debt burden Maximizing profit and minimizing taxes Which of the following is not an assumption underlying M&M proposition I? No arbitrage No taxes Corporate investments are risk-free Symmetric information Selecting investment projects according to rules based either on project NPV or IRR results in maximizing firm value. True False The payback period calculation ignores the time value of money. True False A project's internal rate of return (IRR) depends on it riskiness. True False What is the five-year discount factor given a 15% annual discount rate? 0.497 0.750 0.625 0.250 The amount by which a project increases the value of the firm is given by which of the following? The project's accounting rate of return The project's net present value (NPV). The project's internal rate of return (IRR). The project's present value. Enterprise Free Cash Flows should include: I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements I and IV I, II and IV I , III and IV I, II, III, IV What is the annual depreciation tax shield provided by a piece of equipment that costs $150,000 and is depreciated on a straight-line basis over 10 years? Assume a tax rate of 35%. $15,000 $1,500 $5,250 $9,750 You are saving money for a down payment on a house. Suppose you want to have total savings of $20,000 in 10 years time and you have currently $5,000. What annual interest rate do you need to earn on your initial investment, assuming you contribute no additional savings? 10.0% 18.5% 12.5% 15.0% What is the present value of a perpetuity of $100 given a discount rate of 5%? $ 2,000 $ 3,000 $ 1,500 $ 500 According to the CAPM, a company's beta is one determinant of its cost of equity. True False The CAPM implies a simple relationship between equilibrium asset prices and their corresponding expected returns. True False Beta is a relative measure of risk for a stock. True False According to the CAPM, what determines the risk premium for an individual stock? the risk-free rate of interest and the stock's beta the risk-free rate and the expected return on the stock the stock's beta and the equity market risk premium the risk-free rate and the equity market risk premium Calculate the weighted average cost of capital (WACC) where - debt is 40% of the capital structure - cost of debt is 8% - cost of equity is 11% - tax rate is 35% 7.5% 8.7% 9.0% 9.8% In the CAPM, the parameter beta measures: non-systematic (diversifiable) risk systematic (non-diversifiable) risk total risk risk-adjusted stock returns