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11. Which is the determinants of Capital Structure?
Requirement of Investors
Control
Tax
Government Policy
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12. The cost of monitoring management is considered to be a (an)
bankruptcy cost.
transaction cost.
agency cost.
institutional cost.
13. One potential problem with sensitivity analysis is that it generally looks at sensitivity "one variable at a time." However, one way to judge the sensitivity of results to simultaneous changes in two variables, at least, is to construct an _________.
NPV profile
NPV sensitivity matrix
NPV sensitivity graph
All of the above
14. A call provision, a sinking fund, and/or conversion are used to retire
bonds and preferred stock.
bonds and common stock.
preferred stock and common stock.
only common stock.
15. Payback reciprocal computed by
Annual Cash Inflow/100
Cash/Annual Cash Inflow
Annual Cash Inflow/Total Investment
Profit/Sales x 100
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