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Which of the following statements is (are) true? (1) The pecking order theory of capital structure implies that when a firm uses external finance it means that the firm did not have enough abundantinternal finance. (2) The trade-off theory suggests that holding other things constant, firms respond to a decrease in tax rate by issuing less debt. (3) When equity income is taxed less heavily than interest income, which is usually the case in real world, then the tax benefit of using debt is reduced compared with when there’s only corporate tax . (4) According to Modigliani and Miller, if capital markets are efficient without any forms of imperfection, there are no taxes and there are no costs of bankruptcy, then managers should not take capital structure into account while making decisions.

Which of the following statements is most correct? I.The optimal capital structure simultaneously maximizes EPS and minimizes the WACC.II. As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.III. The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price.IV. The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC.

Nero Violins has the following capital structure: Security Beta Total market value Equity 0 100 Debt 1.6 200 Now assume that Nero decides to issue an additional $100 million of equity and used the cash to repurchase all the debt. Assuming no taxes, and no of costs of financial distress, what is Nero Violins’ new equity after the transaction?

When ethylene glycol, HOCH2CH2OH, is added to the water in an automobile radiator, the effect is to

When ethylene glycol, HOCH2CH2OH, is added to the water in an automobile radiator, the effect is to

Consider the following reaction at equilibrium. What effect will decreasing the temperature have on the system?Fe3O4(s) + CO(g) + 35.9 kJ ⇌ 3 FeO(s) + CO2(g)

Which one of the following compounds will NOT be soluble in water?

A student mixes 4.0 g of KNO3 with 5.0 mL of water at room temperature, and observes that most, but not all, of the KNO3 has dissolved.  Which statement concerning this solution is true?

What is the correct form of the equilibrium constant expression for this reaction?2H2O2 (g)  ⇌  2H2O (g) + O2 (g)

Which of the following mixtures have components which can be separated by filtration?