Midwest electric company uses only debt and common equity

Q:Most firms like to have their stock selling at a high P/E ratio, and they also like to have extensive public ownership (many different shareholders).Q:Indicate whether the following statements are true or false. If the statement is false, explain why.a. If a firm repurchases its stock in the openQ:Axel Telecommunications has a target capital structure that consists of 70% debt and 30% equity. The company anticipates that its capital budget forQ:Gamma Medical’s stock trades at $90 a share. The company is contemplating a 3-for-2 stock split. Assuming that the stock split will have no effectQ:Beta Industries has net income of $2,000,000, and it has 1,000,000 shares of common stock outstanding. The company’s stock currently trades at $32Q:After a 5-for-1 stock split, Strasburg Company paid a dividend of $0.75 per new share, which represents a 9% increase over last year’s pre-splitQ:Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, managementQ:Welch Company is considering three independent projects, each of which requires a $5 million investment. The estimated internal rate of returnQ:Bowles Sporting Inc. is prepared to report the following income statement (shown in thousands of dollars) for the year 2009.Sales $15,200OperatingQ:Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of $0.75 out of annual earnings per share of $2.25. Currently, RubensteinQ:In 2008, Keenan Company paid dividends totaling $3,600,000 on net income of $10.8 million. Note that 2008 was a normal year and that for the past 10