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 :