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Imagine you are a contestant on a popular television quiz show, Cash for Questions. You are thrilled that the category is Capital Structure Concepts,

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Imagine you are a contestant on a popular television quiz show, Cash for Questions. You are thrilled that the category is "Capital Structure Concepts, " because you just learned about the theory and practical consequences associated with corporate financing decisions in your business finance class. There are five questions in this category, and the host, Jason Jack, will give you the answer to each question in each of the following boxes. Remember, you must phrase your response in the form of a question and select the correct answer from the dropdown list. Good Luck! Disclaimer: You won't actually receive any money if you answer the questions correctly. You are now in the final round of the game. This is the Show-Off round. This question has three correct answers, and each will earn you $1,000. Select the three correct responses from those provided to complete the question. Funnel excess cash flows back to the shareholders through stock repurchases. Distribute excess funds to the firm's bondholders by paying more interest expense than it is legally obligated to pay. Minimize the amount of debt in the firm's capital structure so the firm will be able to borrow money at a reasonable rate when good investment opportunities arise. Pay its excess cash flows to the shareholders in the form of higher dividends. Increase the amount of debt in the firm's target capital structure in the hope that higher debt-service requirements will force managers to be more disciplined

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