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Short Answer Questions 66. What is capital structure? 67. What is the signaling theory of capital structure? 68. Explain the relationship between firm value, bankruptcy

Short Answer Questions

66. What is capital structure?

67. What is the signaling theory of capital structure?

68. Explain the relationship between firm value, bankruptcy costs and tax benefits (shield).

69. What is the trade-off theory of capital structure?

70. What is window of opportunity for capital structure decisions?

71. What is the pecking order hypothesis of capital structure?

72. How is the cash conversion cycle related to the value of a firm?

73. What is the signaling theory of dividend?

74. What does MM propose about dividends?

75. What is the reason for the increase in stock price after stock repurchase?

76. Define MVA and EVA method of valuation.

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