The business risk (also known as the operating risk) of a company: A. is inversely related to the required return on the company's assets. B. is dependent upon the relative weights of the debt and equity used to finance the company. C. depends on the company's level of unsystematic risk. D. has no relationship with the required return on a company's assets according to M\&M theory. E. is positively related to the company's cost of equity. Which of the following is NOT a good reason for a firm to pursue higher dividends? A. Higher dividends can better align the interests of the top executives (e.g. CEO) with the owners and thereby reduce agency costs B. Higher dividends cater to investors with a present bias. C. The tax rate on capital gains is lower than the tax rate on dividends: D. Higher dividends typically signal a higher firm value When calculating the Net Advantage to Leasing (NAL), we consider all of the following EXCEPT: A, applicable tax rate. B, cost savings that can be realized C. purchase price of the asset. D. lease payment amount. E. annual depreciation expense. Joe and Jill both have a large investment in Gamestop that they are considering selling. Joe bought Gamestop on Jun 4,2021 at 562 per share, while Jill bought the stock on Feb 19, 2021 at $10.15 per share. Suppose that the current markat price of Gamestop is $28 per share and it correctly reflects the fundamental value of the stock. If Joe decides NOT to sell the share while Jill does, then which of the following behavioral biases is Joe most likely subject to? A. Ambigulty aversion B. Present bias C. Disposition effect D. Mental accounting F. Loss Aversion F. Narrow framing