would you help me solve the problems ? (marked questions may be wrong , I am wai

Question

would you help me solve the problems ? (marked questions may be wrong , I am waiting for the correct answer from you. )

10Mf a company is all equity financed, there would be no meed so make adbustmns dditional Funds Needed ts financial planming stage true b) false ncial 11)A company's shares are traded at 516 per share yust betore the aounced diwidends are paid. A dividend payment of $4 per share is made What should be the immediate price (everything else the same)7 a) $20 because owners of the share wrill now have the share and the dividendmoney b) $12 because after the payment, share price will no more carry the dividend money c) $16 because the dividends are announced and the price should reflect that information already We cannot know d) 12)The best capital structure is the one in which a company is all equity inanced and has no debts to outside sources such as the banks and bond investors a) true b) false c) in some sectors, yes. But not in all the sectors. 13)lf the lead times are reduced, there would be improvement in: a) free cash flows b) EBITDA profits d) none 14)Taxi rates are flat (the same) in Istanbul. During traffic congestions to reject customers for long-distance travels. Why? a) they try to cut the lead time b) they try to increase the asset turnover ratic c) both a and b d) none of the above

Explanation / Answer

Ans 10)

Equity Financing puts no more burden on firm for additional finance which is not the case in deby financing as in Equity financing we have no obligations to meet

Hence given statement is true

Ans 11)

Option 2 is correct response because value of divdend is already incorporated into stock price

Ans 12)

False becuase having debt on the firm's balancesheet has its own benefits

Debt is cheaper form of capital than that of equity financing , firm gets tax shiled when debt is one form of capital with firm's balance sheet

Some good mix of Debt and Equity is essential for Any firm for any sector

Ans 13)

Reduction in Lead time would cut down the inventory levels needed as process of completion gets speedup

Hence improvement in inventory levels is seen

Hence Option D is correct response

Ans 14)

Option A is correct response

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