Question: please answer all, im stuck!! 24. How do bankruptcy costs affect the capital structure decision? A. Induce firms to have lower leverage B. Induce firms
24. How do bankruptcy costs affect the capital structure decision? A. Induce firms to have lower leverage B. Induce firms to have higher leverage C. No effect on leverage D. Induce firms to issue less preferred stock E. None of the above 25. Qualkonk Corporation paid dividends of $2 per share and had earnings per share of $8 in 2016. It has debt tax shields of $5 per share. What is Qualkonk's dividend payout ratio? A. 4 B. 0.4 C. 0.625 D. 0.25 E. None of the above 26. Megabub Corporation has 4 million shares outstanding and earned $48 million in 2016. It paid a total of $8 million in dividends during the year. What is Megabub's dividend payout ratio? Round your answer to the second decimal place A. 0.17 B. 0.50 C. 2.00 D. 0.08 E. None of the above 27. Larchmount Manufacturing, Inc. had a dividend payout ratio of 40% in 2014. It earned $20 million that year and had 5 million shares outstanding. What is Larchmount's dividend payment per share for that year? A. 40% B. $1.60 C. $4 D. $0.25 E. None of the above
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