Corporate FInace Assignment/ Professional Essay Writers
May 16th, 2020
1. Which of the following statements is/are true about Miller and Modigliani’s proposition II?
I. The expected return on equity is positively related to leverage.
II. The required return on equity is a linear function of the firm’s debt to equity ratio. The risk of equity increases with leverage.
III. Choose the most appropriate answer:
A. I only.
B. Il only.
C. I, II, and III.
D. I and II only.
2. Vertical mergers are those in which the participants are?
A. in the same industry.
B. in different industries.
C. in different phases of the value chain.
D. none of the above.
3. Which of the following is not a real option?
A. A stock option.
B. An abandonment option.
C. An investment timing option.
D. An expansion option. Get Finance Help Today
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