Question 2 (1 point) Other things held constant, the higher a firm's fixed costs, the...

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Question 2 (1 point) Other things held constant, the higher a firm's fixed costs, the smaller its operating leverage. True False Question 4 (1 point) What is the optimal capital structure under the Modigliani and Miller theory with corporate taxes? It depends on company's manager. 50% debt and 50% common stock. No debt and 100% common stock. 100% debt Question 23 (1 point) Ignoring possible tax effects and signals, the total market value of equity is the same whether a firm pays dividends or repurchases stock. True False Question 24 (1 point) Financial risk is the additional risk placed on the common shareholders as a result of the decision to finance with common share. True False

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