"You are considering the capital structure for a firm under three different cases: Case I. no taxes, no bankruptcy costs; Case II. with taxes but no bankruptcy costs; Case III. with taxes and with bankruptcy costs. 1) There is a (positive or negative) relation between firm value and WACC. 2) In which case (I, II or III), capital structure is irrelevant? why? 3) Given case II and leverage decreases, what happens to firm value? what happens to cost of equity?"

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Answerworking capital management;