答案和详解如下： 11.Ignoring any costs related to financial distress, if a firm increases its financial leverage, the value of the firm should: A) increase because the weighted average cost of capital will be lower due to interest tax shields. B) decrease because the required rate of return on debt is lower than that of equity. C) increase because the FCFF will increase. D) decrease because the FCFF will decrease. The correct answer was A) When a firm adds leverage, its value may increase due to the tax shields on interest expense and the generally lower cost of debt. In theory, there is an optimal capital structure. If the amount of debt employed is greater than the optimal, the costs associated with risk of bankruptcy or financial distress begin to outweigh the advantage of interest tax shields. 12.Which of the following is least likely to change as the firm changes leverage? A) Free cash flows to equity (FCFE). B) Free cash flows to firm (FCFF). C) Weighted average cost of capital (WACC). D) Interest expense. The correct answer was B) The free cash flows to firm are normally unaffected by the changes in leverage, as these are the cash flows before the debt payments. | 
发表于 2008-5-20 13:40
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