Identify the corect statement: O H EBIT is expected to be below the indifference point, the firm will prefer the capital structure with more debt O The EBIT-EPS indifference point is the point at which EBIT is the same under two different capital structures O The EBIT-EPS indifference point is always higher for an existing fiom compared to a new firm OH EBIT is expected to be above the indifference point the frm will prefer the capital structure with more debt

WoeBeTide's chief objective is to meet its investment needs and maintain its target debt-equity ratio before paying dividends. WoeBeTide is following a dividend approach. Select one: a. cyclical b. stable C. compromise d. residual e. stochastic

The optimal capital structure for firms in stable industries can reasonably contain ________________ than firms in volatile industries. Select one: A. more debt B. less debt C. an equal amount of debt D. There is no relationship between the cyclical nature of an industry and optimal capital structure

Which of the followings proposes that there is a tradeoff between level of borrowing and benefit of tax shields up a point after which financial distress costs start kicking in?     CAPM     Static capital structure theory     M&M Proposition I     M&M Proposition II     Pecking order theory   Floation cost includes     Gross spread     Direct expenses     Indirect expenses     Abnormal returns     All of above   Which one of the followings states that the value of a firm is unrelated to the firm's capital structure?     Capital Asset Pricing Model     M&M Proposition I     M&M Proposition II     Law of One Price     Efficient Markets Hypothesis