please answer all the parts

Question 8 (2 points) 3. Which of the following statements is correct? B] Many of the factors that affect a firm's business risk are affected by industry 0 characteristics and economic conditions. A} lC-ne of the benefits to a firm of being at or near its target capital structure is that this 0 eliminates any risk of bankruptcy. O C} A firm's business risk is determined solely by the financial characteristics of its industry. 0 D} A firm's financial risk can be minimized by diversification. Question 9 (2 points) Which of the following is correct? 0 The capital structure that maximizes the common share price is also the capital structure that maximizes earnings per share As long as a firm's aftertax cost of equity exceeds its aftertax cost of debt, it can always reduce its WACC by 0 increasing its use of debt A company should always increase its debtequity ratio as long as the incremental tax savings 0 from doing so are greater than all other incremental costs 0 Increasing a company's debt ratio will typically reduce the marginal costs of both debt and equity financing; however, this still may raise the company's WACC 4] For the past ve years LongHaul Transport Ltd has paid dividends of $1.05 a share. The company just announced that dividends are being increased by 10%. As a result, the market price of Long-Haul Transport stock increased. The increase in the share price is generally attributed to the: O C} Information content of the dividend. O B} Change in the dividend policy. 0 A} Increase in the current dividend amount. 0 D} Reinvestment of the dividend amount. Question 13 (2 points) Which of the following would decrease the value of an American call option? I. The exercise price is decreased II. The value of the underlying asset decreases Ill. The expiration date is extended IV. The variance of the underlying asset decreases O H and I\" only 0 land II only 0 II and IV only Question 14 (2 points] If the quoted price for a June 2016 10year CGB futures contract has changed from 118.72 to 1183?, what is the corresponding change in value in this futures contract? sto Question 15 (5 points] 2. You are an investment manager and see an opportunity to lend $9,000,000 to Acme Industries in 7 months, when they require the funds. The loan will be for a 10 year term. and the interest rate will be set in 7 months when the loan is finalized. You are concerned that interest rates may fall over the next 7 months. Should you buy or sell 10 year bond futures in order to hedge yourself? Briefly explain your logic. (5 Marks) n 3 99 v Format v B I U v