Order capital structure theory assignment

Order capital structure theory assignment
Which of the following statements concerning capital structure theory is correct?
A In the traditional view, there is a linear relationship between the cost of equity and financial risk
B Modigliani and Miller said that, in the absence of tax, the cost of equity would remain constant
C Pecking order theory indicates that preference shares are preferred to convertible debt as a source of finance
D Business risk is assumed to be constant as the capital structure changes
5 Which of the following actions is LEAST likely to increase shareholder wealth?
A The weighted average cost of capital is decreased by a recent financing decision
B The financial rewards of directors are linked to increasing earnings per share
C The board of directors decides to invest in a project with a positive NPV
D The annual report declares full compliance with the corporate governance code
6 Which of the following statements are features of money market instruments?
(1) A negotiable security can be sold before maturity
(2) The yield on commercial paper is usually lower than that on treasury bills
(3) Discount instruments trade at less than face value
A 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3
7 The following are extracts from the statement of profit or loss of CQB Co:
$’000
Sales income 60,000
Cost of sales 50,000
–––––––
Profit before interest and tax 10,000
Interest 4,000
–––––––
Profit before tax 6,000
Tax 4,500
–––––––
Profit after tax 1,500
–––––––
60% of the cost of sales is variables costs.
What is the operational gearing of CQB Co?
A 5·0 times
B 2·0 times
C 0·5 times
Having a hard time figuring out how to do your assignment?
Ask our experts for help and get it done in no time!
The list is limitless. Research, term papers, dissertations, thesis, editing — all options are included. Even if you have a unique type of task, our writers are creative and meticulous enough, and they know how to take care of it. The following specific types of services are what our clients require most often.
Application essays
You plan to apply to a college or a uni of your dreams and need a clever, engaging essay that’ll stand out? You’ll get it. It’s great if you have some specific ideas! They’ll be incorporated into the text. If you don’t, it’s not an issue. The writer will do an outstanding job anyway.
Annotated bibliography
Choosing credible sources and proving why they’re relevant can be a long and tedious process. OurA writers are ready to do it for you.
Speech writing
Do you want a concise and catchy speech? It’s not a problem. “Do my homework” is the request we are waiting for.
PowerPoint presentations
Our writers have excellent design skills. They’ll provide you with a vivid and insightful PowerPoint presentation interesting for professors and classmates.
Every paper we deliver is customized. To guarantee its originality, we double-check every essay with our in-house plagiarism-detection software.
Our experts will edit your paper for free if you notice any flows within it. Apply for revision if you want to change anything in your essay.
In case of any discrepancies between our promises and the results you get, apply for a refund and get a full or partial reimbursement.
 
D 3·0 times