1.)

A monetary expansion stock prices due to a decrease in the and an increase in the , everything else held constant. reduces; future sales price; expected rate of return bl reduces; current dividend; expected rate of return bl increases; required rate of return; future sales price bl increases; required rate of return; dividend growth rate bl Since deductibility of interest expenses offers tax advantage, corporations can always increase enterprise value by increasing leverage in their capital structure, all else being equal. A True A False