Firm equity multiplier will definitely increase

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1. A firm's Equity Multiplier will definitely increase if they : 1. issue both new long-term bonds and new common stock simultaneously; 2. issue new long-term bonds only; 3. issue new common stock only; 4. increase their debt ratio

a. 1 only

b. 2 only

c. 3 only

d. 4 only

e. both answrs (1) and (4) are correct

f. both answers (2) and (4) are correct

2. Given a 3.5%, compute the total present value of payments made in years 1, 2, 3, and 4 of $1,000, $1,200, $1,200 and $1,500.

$4,900

$4,329.71

$4,475.88

$4,591.37

Reference no: EM131989777

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