How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for debt in valuation? O VCM relies on financial projections, while corporate finance uses DCF and CAPM. VCM uses comparable IPOS or acquisitions, while corporate finance uses APV and WACC. O VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV. O VCM considers enterprise performance, while corporate finance focuses on equity valuation.

Generally speaking, the cost of debt is cheaper than the cost of equity. Does it imply that a firm should increase its debt-to-equity ratio to as high as possible such that its corporate cost of capital can be minimized?

How does a firm's dividend policy reflect its approach to financial decision-making, and what are the two primary strategies discussed in this context? A. Explain the concept of treating dividends as the residual part of a financing decision. B. Outline the key characteristics and principles of an active dividend policy strategy. C. Compare and contrast the implications of these two strategies on a firm's overall financial management. D. Provide examples illustrating situations where each strategy may be suitable for a firm. E. Assess the potential impact of a firm's dividend policy on investor perceptions and shareholder value.   Choose the correct options (A, B, C, D, or E) to complete the statement, considering the various aspects of a firm's dividend policy and its significance in financial decision-making.

1.) What value due financial ratios offer investors in reviewing the financial performance of firms?

The financial manager of a firm determines the following schedules of cost of debt and cost of equity for various combinations of debt financing:   Debt/Assets After-Tax Cost of Debt Cost of Equity 0 % 4 % 8 % 10   4   8   20   4   8   30   5   9   40   6   10   50   8   12   60   10   14   70   12   16     Find the optimal capital structure (that is, optimal combination of debt and equity financing). Round your answers for the capital structure to the nearest whole number and for the cost of capital to one decimal place. The optimal capital structure:   % debt and   % equity with a cost of capital of   % Why does the cost of capital initially decline as the firm substitutes debt for equity financing? The cost of capital initially declines because the firm cost of debt is  than the cost of equity. Why will the cost of funds eventually rise as the firm becomes more financially leveraged? As the firm becomes more financially leveraged and riskier, the cost of…