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Why will price-earnings ratio decrease if a firm can decrease its operating costs, all else constant? Based on MM Proposition I with taxes, how much

Why will price-earnings ratio decrease if a firm can decrease its operating costs, all else constant?

Based on MM Proposition I with taxes, how much debts should a firm borrow to make the firm value be maximized?

Jones & Co. recently went public and received $23.07 a share on their entire offer of 30,000 shares. Keeser & Co. served as the underwriter and sold 28,500 shares to the public. Keeser & Co. returned unsold shares to Jones & Co. What type of underwriting was this?

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