Please show the work for calculation type questions

16) One of the most important factors in making debt less expensive than equity is:

A) the tax deductibility of depreciation.

B) the tax deductibility of equity.

C) the tax deductibility of dividends.

D) the tax deductibility of the present value

E) None of the above

17) Most financial theorists believe that the optimal capital structure is a ________ with a debt to total value ratio somewhere around ________.

A) point; 50%

B) point; 25%

C) range; 30%-60%

D) range; 10%-40%

18) Not all firms have the same optimal capital structure. Factors that might influence a firm's capital structure include:

A) the industry in which it operates.

B) the volatility of its sales and operating income.

C) the collateral value of its assets.

D) all of the above

19) TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 5.50% per year and the Euro depreciates against the dollar from $1.45/ at the time the loan was made to $1.40/ at the end of the first year, how much interest will TropiKana pay at the end of the first year (rounded)?

A) $55,000

B) $79,750

C) $77,000

D) $37,931

20) Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing?

A) increased agency costs

B) increased probability of financial distress (bankruptcy) due to fixed interest payments

C) alternative tax shields to those supplied by interest payments

D) All of the above offset the tax advantage of debt as a source of financing.