Holding everything else constant enterprise value will increase;

Select one:

a) the required rate of return increases.

b) the current assets decrease.

c) the current liabilities decrease.

d) the net debt decreases.

Holding everything else constant enterprise value will decrease;

Select one:

a) the required rate of return increases.

b) the current assets decrease.

c) the current liabilities decrease.

d) the net debt decreases.

10. The dividend gain is 10%, the tax rate is 20%. The effective cost of equity is:

Select one:

a) 8%

b) 12%

c) 10%

d) 18%