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Please indicate correct answer only no explanation 6. The value of a firm is maximized when the: A. Cost of equity is maximized. B. Tax

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Please indicate correct answer only no explanation
6. The value of a firm is maximized when the: A. Cost of equity is maximized. B. Tax rate is zero. C. Levered cost of capital is maximized. D. Weighted average cost of capital is minimized. E. Debt-equity ratio is minimized. 7. Which form of financing do firms prefer to use first according to the pecking-order theory? A. regular debt B. convertible debt C. common stock D. preferred stock E. internal funds 8. Which one of the following is a direct bankruptcy cost? A. Loss of customer goodwill resulting from a bankruptcy filing B. Legal and accounting fees related to a bankruptcy proceeding C. Management time spent on a bankruptcy proceeding D. Any financial distress cost E. Costs a firm spends trying to avoid bankruptey 9. Which of the following tend to keep dividends low? I. shareholders desiring current income II. investors with high dividend tax rates but low capital gains tax rates III. the desire to maintain constant dividends over time IV. flotation costs A. I and II only B. III and IV only C. II, III, and IV only D. I, II, and III only E. I, II, III, and IV 10. The information content of a dividend increase generally signals that: A. the firm has a one-time surplus of cash. B. the firm has few, if any, net present value projects to pursue. C. management believes earnings growth will be strong going forward. D. the firm has more cash than it needs due to a decline in future orders. E. dividends thereafter will be lower. 11. The ex-dividend date is defined asbusiness day(s) before the date of record. A. 1 B. 2 C. 3 D. 4 E.5

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