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Please answer the next few questions: 1.What will be the retained earnings if a firm with $5000 shares outstanding earns $10 per share and has 30%

Please answer the next few questions:

1.What will be the retained earnings if a firm with $5000 shares outstanding earns $10 per share and has 30% plowback ratio? It will increase by:
$15,000
$30,000
$35,000
$50,000

2.The purpose of a sinking fund is to:
Reduce the par value of stock over time
take advantage of the tax break on preferred stock
periodically retire debt prior to final maturity
allow risky corporations to avoid bankruptcy.

3. Protective covenants prevent bond issuers from irresponsible over-borrowing behavior and are offered for the benefit of:
common shareholders
preferred shareholders
bondholders
both common and preferred shareholders

4. a companys board of directors is primarily an agent of the company's
management
employees
shareholders
management and employees

5. the system of electing a board of directors where each director is voted on separately is known as:
majority voting
supermajority voting
cumulative voting
proxy voting

6. according to MM, if individuals cannot obtain the same borrowing terms as firms, then:
capital structure may be relevant
capital structure may be irrelevant
individuals should not invest in levered firms
firms should increase their payments to individuals

7. which of the following would not be expected to change with changes in the firms capital structure?
weighted-average cost of capital
expected return on equity
expected return on assets
expected earnings per share

8. according to MM, "homemade" dividends are created by:
purchasing only stocks that continually increase their regular dividends
selling a portion of your non-dividend paying holdings
purchasing treasury bills rather than common stocks
withdrawinig cash from savings on dividend payment dates

9. an increase in share price following an incresae in dividends is logical if the
firm borrows to obtain cash for the dividend
increased dividend signals higher future earnings
financial markets are efficient
clientele effect is not important

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