If an investor buys "a" proportion of an both debt and equity of a levered firm (firm L)
Then his/her payoff is:
A) (a) * (profits)
B) (a) * (interest)
C) (a) * (profits - interest)
D) none of the above
Correct Answer:
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I. combining assets
II. splitting
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Q7: If an investor buys "a" proportion of
Q8: Capital structure is irrelevant if:
A) the capital
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Q12: An investor can create the effect of
Q12: The law of conservation of value implies
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Q16: If an investor buys "a" proportion of
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