Author: Anonymous

Equipment trust certificates issued by a firm should be safer than its debentures.​

A stock dividend has no impact on a firm’s liabilities or the price of its stock.​

A firm will prefer to issue preferred stock rather than debt because the dividend is tax deductible.

The present value of an annuity is worth more if interest rates are 5% instead of 10%.​

​The future value of a dollar 1. increases with lower interest rates 2. increases with higher interest rates 3. increases with longer periods of time 4. decreases with longer periods of time

The present value of an annuity is worth more if interest rates are 5% instead of 10%.​

A firm may initially increase its use of debt without increasing the cost of capital.

A firm may initially increase its use of debt without increasing the cost of capital.

The assets of a typical commercial bank include

The assets of a typical commercial bank include