FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com - Page 19

Which of the following statements is CORRECT? • Question 10 Which of the following statements is CORRECT? • Question 11 Which of the following statements is CORRECT? • Question 12 Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in its capital structure? • Question 13 Blueline Publishers is considering a recapitalization plan. It is currently 100% equity financed but under the plan it would issue long- term debt with a yield of 9% and use the proceeds to repurchase common stock. The recapitalization would not change the company's total assets, nor would it affect the firm's basic earning power, which is