Can you share your justifications of the below?

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. If a bond sells at a discount, yield to call is more likely to occur.
  2. A firm should select the capital structure that is fully unlevered.
  3. Leveraged beta represents fundamental operational risk.
  4. All other things held constant; the future value of an ordinary annuity is always having a higher future value than annuity due.
  5. 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.

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Financial Analysis 1 Answer UROOJ -