For Each of the Following Items, Indicate by Placing an X

question 78

Essay

For each of the following items, indicate by placing an X in the appropriate column whether it is a measure of: (column 1) liquidity, (column 2) asset management, (column 3) debt, or (column 4) profitability.
- $$\begin{array} { | l | c | c | c | c | } \hline & & \text { Asset } & & \\& \text { Liquidity } & \text { Management } & \text { Debt } & \text { Profitability } \\\hline \text { Return on sales } & & & & \\\hline\end{array}$$

Calculate and understand the implications of restructuring a firm's capital through debt issuance and equity repurchase.

Analyze the impact of taxes on a firm's cost of capital and overall financial decisions.

Understand and apply the Modigliani and Miller Propositions I and II within the context of corporate finance.

Evaluate the effects of leverage on return on equity (ROE) and the risk-return trade-off for shareholders.