8. Firms can repurchase shares in the following ways:
I) Open market repurchase
II) Through a tender offer
III) Through a Dutch auction process
IV) Through direct negotiation with a major shareholder
9. Company X has 100 shares outstanding. It earns $ 1,000 per year and expects to pay all of it as dividends. If the firm expects to maintain this dividend forever, Calculate the stock price today.( The required rate of return is 10 %)
10. Capital structure of the firm can be defined as:
I) the firm ' s debt-equity ratio
II) the firm ' s mix of different securities used to finance assets
III) the market imperfection that the firm ' s manager can exploit
11. If an investor buys " a " proportion of an unlevered firm ' s( firm U) equity then his / her payoff is:
12. If an individual wanted to borrow with limited liability he / she should:
13. Capital structure is irrelevant if:
14. The effect of financial leverage on the performance of the firm depends on:
15. Minimizing the weighted average cost of capital( WACC) is the same as: