Nov 7, 2022 11. (3 points) Which one of the following states that the value of a firm increakes with the firm's financial leverage? A. M\&M Proposition II, no tax. B. M\&M Proposition I, no tax. C. M\&M Proposition 1 , tax. D. Pecking-order theory. E. Trade-off theory (or Static theory of capital structure) 12. (3 points) Chianti Co it waltum.ann.. Is of stock through a Dutch suction. The bids received are as follows: How many shares will be allocated to Bidder A? A. 85 shares B. 90 shares C. 95 shares D. 100 shares 13. Which one of these affects the length of the cash cycle but not the operating cycle? A. Accounts receivable period B. Both the accounts receivable and the accounts payable periods In Inventory period C. Accounts payable period D. Both the accounts receivable and inventory periods 14. (3 points) Which one of the followings is associated with restrictive short-term financial policy? 1. Use of less short-term financing; use more long-term financing for inventory II. Liberal credit terms for customers III. Lass of credit customers. IV. Greater inventory selection A. 1 and IV B. II and IV C. 1 and III D. III only 15. (3 points) Which form of financing do firms leag prefer to use, according to the pecking-order theory? A. Regular debt B. Convertible debt C. Common stock D. Internal funds