pranaygupta693

pranaygupta693

Lv4

pranaygupta693Chhattisgarh Swami Vivekanand Technical University

0 Followers
0 Following
0 Helped
I will provide you with the best quality answers and content.

ANSWERS

Published76

Subjects

Business1Science2Algebra22Engineering2Computer Science2Calculus21Mathematics4Physics7Finance12Economics3
Answer: -4 < x < -3.5 Step-by-step explanation: -4 < x < -3.5 Solv...
Answer: Step-by-step explanation: Step 1: Solve the individual inequalities: -...
Answer: x >= 7/3 Step-by-step explanation: Here's how to solve the inequali...
Answer: x<1 Step-by-step explanation: Let's solve the inequality:3x+2<5 ...
TRUE Here's the reasoning behind MM's proposition: Perfect Market Assumptions:...
Answer: FALSE Step-by-step explanation: False. Here are the reasons ; Financia...
Answer: TRUE Step-by-step explanation: Modigliani and Miller Proposition II st...
Answer: FALSE Step-by-step explanation: Modigliani and Miller (MM) Proposition...

V2 F1 Q1-5

Please give explanations

1) The return on assets of a typical firm may change over time because of changes in business and economic conditions, but it is unlikely to change based on the financing or capital structure of the firm with reasonable amounts of debt.

a) True

b) False

2) Your firm has been plodding along without much attention from the stock market. Your boss insists that he can (a) increase the return on equity to shareholders by taking on more debt, and (b) attract new investors to the firm due to the higher returns.

a) False

b) Partly true, partly false

c) True

Q3) In a world with no frictions – that is, taxes, costs of bankruptcy, asymmetric information - there is no optimal capital structure (that, is no optimal mix of debt and equity).

a) True

b) False

Q4) In a world with taxes and bankruptcy costs, and in which interest on debt is tax deductible, if a firm has some debt:

a) The relationship between return on assets and the WACC is indeterminate and depends on several factors.

b) Its return on assets is always greater than the weighted average cost of capital (WACC).

c) Its return on assets is always is equal to the weighted average cost of capital (WACC).

d) Its return on assets is always less than the weighted average cost of capital (WACC).

Q5) In the real world, where there are taxes and interest on debt is tax deductible, if two firms have the same cash flows as each other in all possible scenarios in the future, their valuation at any point will:

a) Will depend on the capital structures adopted by the firms.

b) Will depend on the method of valuation used.

c) Will depend on the capital structures adopted by the firms and the valuation method used

d) Will be the same as each other regardless of the method of valuation.

b) False. Capital structure can impact ROE through financial leverage. If the ...

V2 F1 Q1-5

Please give explanations

1) The return on assets of a typical firm may change over time because of changes in business and economic conditions, but it is unlikely to change based on the financing or capital structure of the firm with reasonable amounts of debt.

a) True

b) False

2) Your firm has been plodding along without much attention from the stock market. Your boss insists that he can (a) increase the return on equity to shareholders by taking on more debt, and (b) attract new investors to the firm due to the higher returns.

a) False

b) Partly true, partly false

c) True

Q3) In a world with no frictions – that is, taxes, costs of bankruptcy, asymmetric information - there is no optimal capital structure (that, is no optimal mix of debt and equity).

a) True

b) False

Q4) In a world with taxes and bankruptcy costs, and in which interest on debt is tax deductible, if a firm has some debt:

a) The relationship between return on assets and the WACC is indeterminate and depends on several factors.

b) Its return on assets is always greater than the weighted average cost of capital (WACC).

c) Its return on assets is always is equal to the weighted average cost of capital (WACC).

d) Its return on assets is always less than the weighted average cost of capital (WACC).

Q5) In the real world, where there are taxes and interest on debt is tax deductible, if two firms have the same cash flows as each other in all possible scenarios in the future, their valuation at any point will:

a) Will depend on the capital structures adopted by the firms.

b) Will depend on the method of valuation used.

c) Will depend on the capital structures adopted by the firms and the valuation method used

d) Will be the same as each other regardless of the method of valuation.

Answer: Step-by-step explanation: b) False. Capital structure can impact ROE t...
Answer: Yes, I will too ask you questions if needed

F2 Q1-5

1.

The return on equity of a typical firm may change over time because of changes in business and economic conditions, but it is unlikely to change based on the financing or capital structure of the firm.

a. False.

b. True.

2.

Your firm has been plodding along without much attention from the stock market. Your boss insists that he can (a) increase the return on assets to shareholders by taking on more debt, and (b) attract new investors to the firm due to the higher returns.

a. False.

b. Partly true, partly false.

c. True.

3.

Even in a world with no frictions – that is, taxes, costs of bankruptcy, asymmetric information – debt will always be preferred because cost of debt is always lower than cost of equity for a firm.

a. True.

b. False.

c. Partly true, partly false.

4.

In a world with taxes and bankruptcy costs, and in which interest on debt is tax deductible, if a firm has some debt:

a. The return on equity is less than the weighted average cost of capital (WACC).

b. The return on equity is greater than the weighted average cost of capital (WACC).

c. The relationship between return on equity and the WACC cannot be determined because it depends on several factors.

5.

In the real world, where there are taxes and interest on debt is tax deductible, if two firms have the same cash flows as each other in all possible scenarios in the future, the returns on equity of the two firms will:

a. Will depend on the capital structures adopted by the firms.

b. Will depend on the capital structures adopted by the firms and the valuation method used.

c. Always be equal to each other.

d. Will depend on the method of valuation used.

Answer: Step-by-step explanation: False. Capital structure (debt vs. equity) c...
Answer: The blanks can be filled as follows: Target capital structure, debt, p...
Answer: Step-by-step explanation: Statement 1: True Retained earnings come fro...
Answer: - A Public-Private Partnership (PPP) is a collaborative arrangement be...
Answer: Step-by-step explanation: Identifying the right comparable firms is a ...

F2 Q1-5

1.

The return on equity of a typical firm may change over time because of changes in business and economic conditions, but it is unlikely to change based on the financing or capital structure of the firm.

a. False.

b. True.

2.

Your firm has been plodding along without much attention from the stock market. Your boss insists that he can (a) increase the return on assets to shareholders by taking on more debt, and (b) attract new investors to the firm due to the higher returns.

a. False.

b. Partly true, partly false.

c. True.

3.

Even in a world with no frictions – that is, taxes, costs of bankruptcy, asymmetric information – debt will always be preferred because cost of debt is always lower than cost of equity for a firm.

a. True.

b. False.

c. Partly true, partly false.

4.

In a world with taxes and bankruptcy costs, and in which interest on debt is tax deductible, if a firm has some debt:

a. The return on equity is less than the weighted average cost of capital (WACC).

b. The return on equity is greater than the weighted average cost of capital (WACC).

c. The relationship between return on equity and the WACC cannot be determined because it depends on several factors.

5.

In the real world, where there are taxes and interest on debt is tax deductible, if two firms have the same cash flows as each other in all possible scenarios in the future, the returns on equity of the two firms will:

a. Will depend on the capital structures adopted by the firms.

b. Will depend on the capital structures adopted by the firms and the valuation method used.

c. Always be equal to each other.

d. Will depend on the method of valuation used.

Answer: Step-by-step explanation: Question: As long as the firm is certain tha...
Answer: False Step-by-step explanation: The statement "issuing debt doesn't ne...
Answer: ΔS_ice ≈ -64 J/K ΔS_N2 ≈ 64 J/K Step-by-step explanation: Assumptions:...
Answer: Approximately 0.0627 kg of liquid nitrogen evaporates. Step-by-step ex...
Answer: Approximately 0.0473 kg of liquid nitrogen evaporates. Step-by-step ex...
Answer: approximately 0.0589 kg of liquid nitrogen evaporates. Step-by-step ex...
Answer: It will take approximately 5.6 hours to vaporize 7 kg of liquid nitrog...
Answer: Step-by-step explanation: Degrees are used to measure units relative t...
Answer: Step-by-step explanation: The derivative of u (ln(x)) is 1/x, which is...
Answer: Step-by-step explanation: Step 1: Choose u and dv We want to choose a ...
Answer: Step-by-step explanation: There seems to be a minor error in step 4 an...
Answer: Step-by-step explanation: Integration by Parts Formula: The formula is...
Answer: Step-by-step explanation: Integral: ∫ 2x^2 ln(x) dx Integration by Par...
Answer: Step-by-step explanation: The analysis for using integration by parts ...
Answer: Step-by-step explanation: Step 1: Choosing u and dv You've correctly c...
Answer: Step-by-step explanation: Part 1: Choosing u and dv You've correctly c...
Answer: Step-by-step explanation: The analysis is on the right track! Here's t...
Answer: Step-by-step explanation: Step 1: Choose u and dv: We want to end up w...
Answer: Step-by-step explanation: Here's how to solve the definite integral us...
Answer: Step-by-step explanation: I'd be glad to help you with the definite in...
Answer: Step-by-step explanation: Step 1: Differentiate the substitution formu...
Answer: Step-by-step explanation: 1. ∫ 8x cosh(4x^2) dx Substitution: Let u = ...
Answer: Step-by-step explanation: 1. Evaluating Integrals While the prompt men...
Answer: Step-by-step explanation: Absolutely, here's a breakdown of the steps ...

Weekly leaderboard

Start filling in the gaps now
Log in