Afirm's cfo is considering increasing the target debt ratio, which would also increase the company's interest expense. new bonds would be issued and the proceeds would be used to buy back shares of common stock. neither total assets nor operating income would change, but expected earnings per share (eps) would increase. assuming the cfo's estimates are correct, which of the following statements is correct? a. since the proposed plan increases the firm's financial risk, the stock price might fall even if eps increases. b. if the plan reduces the wacc, the stock price is likely to decline. c. since the plan is expected to increase eps, this implies that net income is also expected to increase. d. if the plan does increase the eps, the stock price will automatically increase at the same rate. e. under the plan there will be more bonds outstanding, and that will increase their liquidity and thus lower the interest rate on the currently outstanding bonds.

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)