Main Objective of the firm is to maximize: _______________________ ___________
You cannot change the value of a firm by changing its _______________ policy
With taxes and no costs of financial distress, you can max the value of a firm by eliminating all stock and replacing it with ________
With no taxes: as amount of debt increases, cost of debt and cost of equity may increase but the ________ on _________
will not change.
If a project has Zero NPV when cash flows are discounted at WACC, then projects cash flows are ___________ to give all investors the returns they require
If a projects return lies _________ the Security Market Line, then it is an attractive investment opportunity
You can reduce/eliminate ________ risk of stock but not the ___________ risk, by combining into portfolios
A project that just breaks even on an accounting basis will have a ______________
Net Present Value
Depreciation is not a cash flow, the ______ ______________ from depreciation is.
When interest rates (compounding frequencies) increase, the Present Value __________________