Answer questions on Word Document Attached ASAP. Thank you.

Answer Questions 1,2,4,6,8 on Pages 232 & 233 1. Looking at Table 6.4, why do public utilities have such a low times-interest-earned ratio? Why is the ratio for information technology companies so high? 2. What is operating leverage? How, if at all, is it similar to financial leverage? If a firm has high operating leverage would you expect to have high or low financial leverage? Explain your reasoning. 4. Explain how a company can incur costs of financial distress without ever going bankrupt. What is the nature of these cost? 6. Why might it make sense for a mature, slow-growth company to have high debt ratio? 8. A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of $106. The customer indicates that a 6 percent return is not very attractive. The broker responds by suggesting the customer borrow $90 for one year at 4 percent interest to help pay for the investment. a. What is the customer's expected return if she borrows the money? b. Does borrowing the money make the investment more attractive? c. What does the Irrelevance Proposition say about whether borrowing the money makes the investment more attractive?