QUESTION $9$

If bankruptcy is not likely, an increase in market value of debt $($ Not book value$)$ due to falling interest rates will result in a decrease in market value of equity

an increase in market value of equity

an increase in market value of the firm

a decrease in market value of the firm

QUESTION $10$

Free Cash Flow to firm and Free Cash flow to equity will equal each other when

Firm has no debt

When firm has large amount of debt

When interest rates are low

interest rates are high