Can someone help me with these following questions please 1.Firms that pay divid

Question

Can someone help me with these following questions please

1.Firms that pay dividends always pay more for capital than firms that do not pay dividends.

True or False

2.A portfolio of common stocks with a Beta .8 has a lower required return than a portfolio that has a Beta of 1.2.

True or False

3.For company x the cost of debt is always less than its cost of equity. This is because investors require a lower rate of return from the companys bonds than from its common stock.

True or False

4.Managers who are trying to maximize firm value should attempt to lower the Beta of their firms common stock to zero.

True or False

5.Points on the Security market line represent an equilibrium in the sense that expected returns equal required returns for a given level of systematic risk.

True or False

6.A decline in the risk premium will lead to an increase in the values of common stocks if the SML accurately describes the valuation of common stocks.

True or False

7.If Boeing has a Beta of 1 it makes more sense to invest in Boeing common stock than the S&P 500 because the shares of Boeing are only exposed to the risk of bad management while the S&P 500 is exposed to market risk.

True or False?

Explanation / Answer

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