Which of the following refers to a levered firm? has all equity in the capital structure. None of the above. accounts Payable as the only liability on the balance sheet.
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- Which of the below statements is false for equity? A. Limited liability B.Residual claim on firm value C.Payouts to equity holders must be made before interest payments D.Voting RightsWhich of the following statements are true Select one: a. All the options b. Capital structure depends on the conditions of the market c. Debt is also called as bond d. Preference shareholders are given preference at the time of liquidation e. The capital structure mix does not influence the total earnings of the firm.Which of the following statements are true Select one: a. All the options b. Capital structure depends on the conditions of the market c. Debt is also called as bond d. Preference shareholders are given preference at the time of liquidation e. The capital structure mix does not influence the total earnings of the firm. Clear my choice
- The cost of equity is ________. Group of answer choices A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverIndicate whether the following statement is true or false. Provide the relevant explanations. The higher the proportion of equity in a company’s overall capital structure, the higher return required by its debtholders. (Explain your reasoning – in your explanation, provide a numerical example supporting your answer.)When a firm has no debt, then such a firm is known as: I) an unlevered firm; II) a levered firm; III) an all-equity firm Multiple Choice A) II only B) I and III only C) I only D) III only
- A firm raised all its capital via equity rather than debt. Such a firm is also referred to as a(n) firm. O unlevered O levered O margined O riskless e vende jThe negative working capital occurs when the اخترأحد الخيارات a. None of the options b. Current equity exceed current assets c. Current assets exceed current equity d. Current liabilities exceed current assets e. Current assets exceed current liabilities Which of the following statement is correct? اخترأحد الخيارات a. Capital structure of a company may comprise of Equity Share Capital, Preference Share Capital and Debentures b. Working capital refers to the mix of different sources of long-term funds c. None of the statement is correct d. Capital expenditure decisions do not involve commitment of large sums of money e. Capital structure is a method of analyzing and comparing substantial future investments and expenditures to determineThe Traditional sources of capital for the firm are: equity capital (stocks) and debt capital (bonds/Notes) Yet, firms have been issuing some financial instruments with characteristics of both equity and debt. Required: Briefly list some of the advantages and disadvantages of of these instruments for the firm and the investor.
- A/ Value of a firm is equal to the value of debt plus value of equity. B/ Asset based valuation method says value of a firm is the value of equity excluding debt. select one: 1/ Agree with b but not A 2/ Agree with a but no b 3/ Agree with both A and B 4/ Disagree with both A and BCommon stockholders; a. have the first claim on the income and assets of the firm b. contribute towards a firm's debt capital c. do not have voting rights in general d. No option is correctDescribe the strenghts and weaknesses of companies dding debt in their capital structure.