The MM propositions would suggest that firms should prefer which one of these debt-to-equity ratios? Multiple-Choice (2 Points) A.0.6 B.0.3 C.0.0 D.0.1 DongDong Inc is an all-equity company with 200 thousand shares outstanding If this company intends to issue 12 million dollars debt secunity to buy back 100 thousand shares of equity According to MM the or em without tar, what is the value offered after debt financing? Multiple-Choice (3 Points) A.6 million dollars B.36 million dollars C 12 million dollars t D 24 million dollars For the period 1926-2012 US Treasury bills had an average retum of 3.6 percent and inflation averaged 3.1 percent US Treasury bille had an approximate real rate of retum of percent and risk premaim of percent Multiple-Choice (2 Points) A-0.5,0 B.0.0.5 c. 005,0 D. 0,-05 4
