Please answer the following question:
Question 1: Explain the trade-offs that firms must consider when they determine their target capital structure
Question 2: Explain the effects that debt financing has on the firm's risk and cost of capital
Question 3: Summarize capital structure theory
Question 4: Explain why firms in different industries have different capital structure.
Question 5: Explain why some investors like the firm to pay more dividends while other investors prefer reinvestment and the resulting capital gains.
Question 6: Discuss the various trade-offs that companies face when trying to establish their optimal dividend policy.
Question 7: Differentiate between stock splits and stock dividends.
Question 8: List the advantages and disadvantages of stock repurchases vis-à-vis dividends from both investor's and companies' perspectives.
Note: Please show basic calculation