(A) to maximize the profit of the shareholders
(B) to maximize the value of the corporation
(C) both A and B
(D) to take care of the interests of the management

(A) Repurchases are more flexible
(B) Repurchases are tax-advantaged
(C) both A and B
(D) none of these

(A) paying cash dividends
(B) stock repurchase
(C) both A and B
(D) none of these

(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