22.    Which of the following statements is CORRECT? I. One advantage of dividends over share repurchases is that dividends provide financial managers with more flexibility.II. Despite several advantages of share repurchases, dividends remain the dominant form of shareholder payout.III. After announcing a share repurchase program, a firm is not required to repurchase any of the shares it intended to buy back.

Simon Software Co. is trying to estimate its optimal capital structure.  Right now, Simon has a capital structure that consists of 0% debt and 100% equity, based on market values.  The risk-free rate is 6% and the market risk premium, RM – Rrf, is 5%.  Currently the company’s cost of equity, which is based on the CAPM, is 12% and its tax rate is 40%.  What would be Simon’s estimated cost of equity if it were to change its capital structure to 50% debt and 50% 

19.    Which of the following improve(s) the corporate governance of a firm? I. A larger fraction of independent directors on the boardII. Having the CEO serve as the chairman of the board of directorsIII. Block ownership by an active institutional investor who is trying to maximize shareholder wealth

Consider the Modigliani and Miller (M&M) theory of capital structure. Assume there are NO taxes and NO bankruptcy costs. Which of the following statements is / are correct? I. Firm value always increases as more debt is addedII. Firm value stays constant as more debt is addedIII. WACC always decreases as more debt is addedIV. WACC always increases as more debt is addedV. WACC stays constant as more debt is added

The following data (in millions) apply to Hill’s Hiking Equipment:                                     Value of operations                       $20,000                   Short-term investments                 $1,000                   Debt                                              $6,000                   Number of shares                          300   The company plans on distributing $500 million through stock repurchases. Assuming the share repurchase does not signal new information, what will the intrinsic per share stock price be immediately following the repurchase?

12.    Which of the following is considered as Anti-takeover provisions? I.    Shareholder rights provisionsII.   Targeted share repurchasesIII.  Lump-sum payments to managers

Consider the Modigliani and Miller (M&M) tradeoff theory of capital structure. Assume there are taxes and bankruptcy costs. Which of the following statements is / are correct? I. Firm value always increases as more debt is addedII. Firm value stays constant as more debt is addedIII. WACC always decreases as more debt is addedIV. WACC always increases as more debt is addedV. WACC stays constant as more debt is added

Los Pollos Hermanos is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.  Your boss, Gus Fring, asks you which project will have the higher NPV. What do you respond?   Year                           0                1                2                3                4     CFS                        -$1,100        $600          $500          $300         $100 CFL                        -$1,100        $100          $300          $500         $600

A nurse is preparing to administer flumazenil. Which medication toxicity is she treating?

Which of the following organizations administers the high-stakes PANCE and PANRE examinations to provide certification for individual PAs; makes rules for eligibility for the exams; awards the “C” in PA-C, dedicated to serving the interest of the public?