s. The relationship between a firm's capital structure and othercompany attributes Which of the following are ways that arm can reduce cash flows in order to prevent managers from wastefully spending excess cash flows? Check that apply Punneling excess cash flows back to shareholders through higher dividends Punneling excess cash flows back to shareholders through stock repurchases Minimieing the amount of debe in the firm's capital structure so that the fem can borrow maney at a reasonable rate when good Investment opportunities are Increasing the amount of debt in the firm's target capital structure in the hope that higher debt-service requirements will force managers to be more disciplined Green Goose Automation Company currently has na debt in its capital structure, but it is considering using some debt and reducing its outstanding equity. The firm's unlevered beta is 125, and its cost of equity is 11.75 Because the firm as no debe in its capital structure, its weighted average cost of capital (WACC) also equals 11.75%. The risk tree tate of interest 346, and the market risk premium (RPM) ** 7%. Green Goose's marginal tax rate is 25% Green Goose is examining how different levels of debt will affect is costs of debt and equity, as well as is WACC. The firm has collected the financial Information that follows to analyze its weighted average cost of capital (WACC). Comolete the following table. D/Cap Ratio /Cap Ratio Bond Rating D/E Ratio 0.00 Before-Tax Cost of Debt Levered Beta (b) 0.0 10 03 125 Cost of Equity ) 11.25 13.3887 WACC 11.25 11.925 0.2 0.25 ? 044 0.6 0.67 88 8.1% 35 10.99 13.94 16.1251 0.6 1.50 85 1.05 2.656 5.000 1542 0 0.2 C 38 0009