Q No. 1 Explain Why you agree or disagree with the following statements. The answer should not be more than 3 sentences. Be specific in your answer and write only the most relevant explanations....

Q No. 1
Explain Why you agree or disagree with the following statements. The answer should not be more than 3 sentences. Be specific in your answer and write only the most relevant explanations.

1. Treasury bills are riskier than corporate bonds


2. A firm should select the capital structure that is fully unlevered.


3. Leveraged beta represents fundamental financial risk.


4. MM Proposition I with no tax supports the argument that a firm should borrow money to the point where the tax benefit from debt is equal to the cost of the increased probability of financial distress.