The p-value for the F-test statistic is approximately equal to ________. (Hint: Use Excel)

If company earnings give a rate of return less than the cost of debt, then it may be advantageous for the firm to be ________

A) all-equity B) owned mostly by debtholders C) half owned by debtholders D) one-third owned by equity holders

The decision on capital structure seems to be related to the expected earnings of the company: ________

A) the less the earnings, the more debt we should sell B) the more the earnings, the more debt we should sell C) the more the earnings, the less debt we should sell D) None of these