BrainMass Quizzes Basics of corporate finance These questions will test you on your knowledge of finance. 1 All else remaining constant, if debt-to-equity rises, the earnings per share (EPS) will usually: decrease increase stay the same 2 Leasing is preferred to buying because it offers: tax advantages more guaranteed income big terminal value 3 The CAPM is a method to adjust the discount rate to recognize: taxes cost risk 4 If the debt-to-equity ratio is 3:2, the debt to asset ratio will be 0.30 0.60 0.50 5 If the foreign interest rate is higher than the domestic rate, in all probability the value of the foreign currency will: fall rise not be affected Submit Quiz
