Question: please answer all 3!! QUESTION 13 You live in a make-believe world with no taxes, no costs of financial distress, no asymmetric information, etc. Assume

please answer all 3!! please answer all 3!! QUESTION 13 You live in a make-believe world

QUESTION 13 You live in a make-believe world with no taxes, no costs of financial distress, no asymmetric information, etc. Assume that your firm currently has zero debt in its capital structure. Your firm's weighted average cost of capital is likely to go down if you issue debt and buy back shares of stock True False QUESTION 14 You have a short position in a call option on Proctor & Gamble stock. If Procter & Gamble closes at $6.50 on the day that the option expires and the strike price is $5.40, what wil be your gross payoff per share (10. not accounting for the upfront premium)? QUESTION 15 Anheuser Busch has issued a bond with the following characteristics: maturity: 19 vears, coupon rate: 7.5% (paid semi-annually). face value: $1000. Your investment advisor has told you that the yield-to-maturity on this bond is 6.5%. What should be the price of this bond

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