Quiz Ch 16 – Equity Risk and Daily Operations of a Firm
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Which type of risk associated with equity is most directly linked to the day-to-day operations of a firm?
Which type of risk associated with equity is most directly linked to the day-to-day operations of a firm?
Which factor would most likely result in a high percentage of debt in the optimal capital structure of a company?
What factor makes the capital structure of a company irrelevant?
What is the typical choice of managers when it comes to financing as per the pecking-order theory?
Which is classified as a direct cost of bankruptcy?
What will be influenced by the utilization of debt?
What happens when the debt-equity ratio decreases in the presence of non-risk-free debt?
Which factor leads to higher costs when a firm increases it in the context of financial distress costs?
What happens to a corporation’s value when it issues permanent debt?
How does the present value of a perpetual tax shield change as the firm’s tax rate and the amount of debt vary?