Question: 1. 2. please answer questions completely using multiple choice. Bu = BE + E +D E+D BD The term Bp in the equation is: the

1. 2. please answer questions completely using multiple choice. Bu = BE

+ E +D E+D BD The term Bp in the equation is:

please answer questions completely using multiple choice.

Bu = BE + E +D E+D BD The term Bp in the equation is: the same as the beta of the firm's assets. O the proportion of the firm financed with equity. the required return on the firm's equity. equal to zero if the firm's debt is riskless. QUESTION 6 Consider the following equation: BU = BED BO . The term in the equation is + the proportion of the firm financed with equity. the same as the beta of the firm's assets, the required return on the firm's equity equal to zero if the firm's debt is riskless Equity in a firm with debt is called: unlevered equity. levered equity. risky equity. riskless equity. QUESTION 8 In the absence of taxes, the capital structure chosen by a firm doesn't really matter because of the effects of leverage on the cost of equity. the interest tax shield. homemade leverage. taxes the relationship between dividends and earnings per share. 500

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