Add-ons Help All changes saved in Drive Times New... 9 B I VA GE + ili ll + 1 1 2 3 4 5 6 Type your answer here: Q9 (10%) Some of the following statements are incorrect. Identify three of them and explain why you think they are incorrect. a) When the breakeven point is less than the EBIT, then leverage is better for the shareholders. b) In 1958, MM stated that the value of a firm is determined by the value of the share of the company c) In 1963, MM proposed that the value of the company will always increase if the company takes on more debt. d) In 1958, MM argued that Capital Structure of a company is relevant. The WACC will change by changing the D/E ratio. e) Optimal capital structure is achieved when the cost from an extra dollar of debt exactly offsets the benefit that comes from an extra dollar in the financial distress. Type your answer here: Q10 (109 Some of the following statements are incorrect. Identify three of them and explain why you think they are incorrect. a) Dividend policy is irrelevant for a company is sometimes true. b) A share purchase is beneficial to the shareholders because it reduces the number of outstanding shares and increases the earnings per share. c) A company will increase dividends when the company makes a profit in any one year d) Not many companies surveyed want to maintain a smooth dividend from year to year. e) Bonus shares issued to the shareholders will always change the value of the