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NEW QUESTION: 1
Answer:
Explanation:
Explanation
NEW QUESTION: 2
A company's gearing (measured as debt/(debt + equity)) is currently 60% and it is investigating whether an optimal gearing structure exists within the industry.
It has analysed the capital structure of similar companies in the industry and it would appear that there is evidence supporting the traditional theory of capital structure.
Companies with the lowest WACC in the industry have gearing of around 45% to 50%.
Which of the following actions would result in the company achieving a more optimal capital structure?
A. Using retained cash to undertake a buyback of some of its equity.
B. Undertaking a rights issue of equity to repay some of its debt.
C. Refinancing to replace some of its short term debt with long term debt.
D. Increasing the level of dividend to return more cash to shareholders.
Answer: B
NEW QUESTION: 3
Which of the following measure describes the symmetry of a statistical distribution?
A. Standard deviation
B. Kurtosis
C. Skewness
D. Mean
Answer: C