Please give me the answer with a detailed explanation.

1. As the level of debt increases, the tax benefits of debt increase until a. tax shield benefits exceeds distress costs. b. interest costs exceed dividend payments c. raw material costs exceed dividend payments d. employee costs exceed interest expense. 2. A firm has a market value of assets of $50,000. It borrows $10,000 at 3%. If the unlevered cost of equity is 15%, what is the firm's cost of equity capital? 3. Why do most people launching a start-up company acquire their funds through the venture capital industry rather than through angel investors? a. Most entrepreneurs are not willing to relinquish the control of their business demanded by angel investors. b. Most entrepreneurs do not want the fees associated with investment by an angel investor. c. Most entrepreneurs do not need the expertise brought to a young firm by an angel investor. d. Most entrepreneurs do not have any relationships with high net worth individuals who are willing to invest in start ups

4. A firm requires an investment of $30,000 and borrows $10,000 at 6%. If the return on equity is 15% and the tax rate is 30%, what is the firm's WACC?

5. Which of the following is NOT a reason why an IPO is attractive to the managers of a private company? a. It gives their private equity investors the opportunity to diversify. b. It gives access to much larger amounts of capital through the public markets in subsequent offerings c. It gives access to large amounts of capital in the IPO. d. It reduces the complexity of requirements regulating the company's management.

6. What are some of the reasons for underpricing in the IPO? 1 There is asymmetrical information. 2 It is not clear what price the market is willing to pay 3 It's a way to market the shares 4 The underwriter wants to maintain good relationships with their pool of investors. a. 1 only b. 2 and 3 c. 4 only d. All of the above 7. Buffalo Corporation sold 8 million shares in an IPO. The market price of Buffalo at the time was $39 per share. Of the 8 million shares sold, 5 million shares were sold by the company by way of primary offering, and the remaining 3 million shares were being sold by the venture capital investors by way of secondary offering. Assume the underwriter charges 6% of the gross proceeds as an underwriting fee. How much money did the venture capitalists receive?

8. Secured loans are less risky than unsecured loans because a. It is tradeable b. It has hold over specific assets c. The return is higher than unsecured loan d. The maturity is shorter

9. Assume that Globe Enterprise has a total market value of $200 million and a marginal tax rate of 30%. If it decides to take out a debt that is 10% of its current market value, what is the tax shield worth?

10. Which of the following statements is FALSE? a. Since the WACC does not change with the use of leverage, the value of the firm's free cash flow evaluated using the WACC does not change, and so the enterprise value of the firm does not depend on its financing choices. b. Even if the firm's capital structure is more complex, the WACC is calculated by computing the weighted average cost of only the firm's debt and equity. c. Holding cash has the opposite effect of leverage on risk and return. d. We use the market value of the firm's net debt when computing its WACC and unlevered beta to measure the cost of capital and market risk of the firm's business assets.

11. Simone founded her company using $150,000 of her own money, issuing herself 300,000 shares. An angel investor bought an additional 200,00 shares for $100,000. She now sells another 500,000 shares to a venture capitalist for $2 million. What percentage of the firm does Simone now own?

12. The Old Factory is currently an all-equity firm with 20 million shares outstanding and a share price of $7.50 per share. Although investors currently expect The Old Factory to remain an all-equity. However, The Old Factory is planning to issue $50 million of long term debt to fund a new investment. The Old Factory has a tax rate of 30%. What is the market value of The Old Factory's assets (including any tax shields) just after the debt is issued?

13. During lockdown you decided to start a new online marketing business on promoting new Instagram influencers. If your business is successful, the company can be sold for $30 million. If it is unsuccessful it will be worth $0. You decide to raise $2 million dollars to help fund your business. Investors are willing to invest $2 million in exchange for 50% of unlevered equity in the company. There are no taxes at present. What is the total market value of the firm without leverage?