FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 14

• Question 9
Burnham Brothers Inc. has no retained earnings since it has
always paid out all of its earnings as dividends. This same situation is
expected to persist in the future. The company uses the CAPM to
calculate its cost of equity, and its target capital structure consists of
common stock, preferred stock, and debt. Which of the following events
would REDUCE its WACC?
• Question 10
Which of the following statements is CORRECT?
• Question 11
Which of the following statements is CORRECT?
• Question 12
Which of the following statements is
CORRECT?