TRUE OR FALSE

1. It is difficult for a firm with few creditors to reorganize informally than it is for a firm with many creditors.

2. Researchers use ratio analysis to estimate the probability that a given will go bankrupt.

3. Share repurchases can be used to produce large-scale changes in capital structures.

4.The cash distribution decision is irrelevant to capital structure and capital budgeting decisions.

5.In apportioning the burden of bankruptcy a common view is that directors are not treated leniently.

6. In Islamic finance, income should be commensurate with quality or real effort and any unfair increment in sales constitute riba'.