Across
- 4. The present value of bankruptcy can be calculated as a product of the probability of ------------------and x percentage of unlevered value.
- 6. The static tradeoff model of financing suggests an optimal capital structure when ---------------benefit of debt is equal to ------------------benefit of equity. (same word for both blanks so one answer)
- 9. The required return to bondholders if they plan to hold the bond till the maturity of the bond is called --------------- of the bond.
- 10. Beta for firms in the utility industry is --------------------than that of firms in a cyclical industry, keeping other things as fixed.
- 14. Share-repurchase is timed when the firm is usually ------------------------------.
- 15. An example of direct costs of bankruptcy is -----------------------costs related to bankruptcy.
- 16. The agency relationship between minority shareholders and majority shareholders of a company is called -------------------------------------(x 2 times) agency problem.
- 17. -----------------------annual-cost is calculated to determine the investment in replaceable machines.
- 18. Share-repurchase helps in increasing ------------------ which is an accounting figure/ratio.
- 19. Dividend-paying firms tend to --------------------------dividends.
Down
- 1. The real cash flows should be discounted by ---------------------discount rate.
- 2. The cost related to monitoring by the board of directors can be termed as ----------------------cost.
- 3. The dividend discount model for growing perpetuity case is called a ------------------- growth model.
- 5. ------------------------------------ in information is the basis of the pecking order theory of financing.
- 7. Beta ---------------------with increase operating leverage.
- 8. The selfish strategy followed by managers or shareholders at the time of financial distress related to investment which causes an expropriation of debtholders is called ----------------.
- 11. The other term for share-repurchase is -------------------------------of shares.
- 12. The pecking order theory of financing suggests that firms should have financial ---------------------------.
- 13. The cost of ------------------- is used as the discount rate in the dividend discount model.
- 15. A ------------------is a contract that enables to secure the use of the tangible property for a specified period by making payments to the owner.