Debt Irrelevance. River Cruises (see Section 16.1) is all-equity-financed with 100,000 sk It now proposes to issue $250,000 of bonds and use the proceeds to repurchase 25,000 sh Suppose an investor currently holds 1,000 shares in the company but is unhappy with decision to borrow $250,000. Which of the following modifications to her own inv portfolio would offset the effects of the firm's additional borrowing? a. Borrow $250 on her own account and use the cash to buy additional River Cruises' shares. b. Raise $250 by selling River Cruises' shares and use the cash to buy the company's debt. c. Keep her current holding of River Cruises' shares and borrow $250 to invest in the compa- shares ares. estment ny's bond issue.

Which of the following is likely not a benefit of requiring a grand jury to listen to and examine all of the evidence against a person suspected of committing a serious crime and then independently deciding whether or not to hand down an indictment? 1.the grand jury system provides the accused another safeguard against being sent to trial and facing conviction based on flawed evidence. 2.the members of the grand jury are drawn from the community and are empowered to render independent decisions about whether or not the government has collected enough evidence to bring an individual to trial. 3.the grand jury’s decision can provide prosecutors insight into what is necessary to build a sufficient case if a similar crime is presented later. 4.the grand jury is impaneled to rubber-stamp prosecutors’ cases, which makes it possible for more cases to reach trial.