1) Write short notes explaining why each of the following are relevant in determining credit ratings and the cost of debt for a firm:
i) The level of intangible assets relative to total assets (Intangibility)
ii) Profitability
iii) Interest Coverage
iv) Leverage
v) Earnings Volatility
vi) Accounting Quality
2) Explain Why Price-to-Book and Price-to-Earnings ratios can vary between companies?
3) State whether an increase in the firm's dividend payout ratio would increase or reduce the value of the firm. Give your reasons.