(A) Borrowing is not a good idea in this case
(B) No difference who (firm or shareholders) borrows
(C) It is better that the firm borrows
(D) It is better that the shareholders borrow

(A) levered equity
(B) unlevered equity
(C) both levered and unlevered
(D) bond equity

(A) $105
(B) $107.5
(C) $110.25
(D) $95

(A) $105
(B) $110.7
(C) $95
(D) $90.7

(A) capital structure
(B) capital budgeting
(C) investing
(D) treasury

(A) beta
(B) return
(C) risk
(D) price

(A) portfolio context
(B) individual security context
(C) both of these
(D) none of these

(A) variance
(B) standard deviation
(C) skewness
(D) kurtosis

(A) Treasury bills
(B) Government bond
(C) Corporate bond
(D) Stocks

(A) specific risk
(B) security risk
(C) market risk
(D) beta