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Which of the following is NOT considered a permanent source offinancing? A. Preferred stock B. Common stock C. Commercial paperD. Corporate bonds

At what rate must $400 be compounded annually for it to grow to$716.40 in 10 years? A. 8% B. 7% C. 6% D. 5%

Lever Brothers has a debt ratio (debt to assets) of 60%.Management is wondering if its current capital structure is tooaggressive. Lever Brotherss present EBIT is $3 […]

A wide bid/ask spread could indicate which of the following?a. The presence of arbitrageursb. Large-volume transactions are taking placec. Frequent trading of a currencyd. Infrequent trading […]

Which of the following would increase the need for externalequity?A. A reduction in corporate profitsB. A seasonal reduction in sales revenuesC. Inadequate investment opportunitiesD. A slow-down […]

__________ is a method of offering securities to a limitednumber of investors.A. Public offeringB. Syndicated underwritingC. Initial public offeringD. Private placement

Which of the following categories of owners have limitedliability?a. General partnersb. Sole proprietorsc. Shareholders of a corporationd. Both a and b

I. T. Canwait Inc. a U.S.-based multinational has just soldcans to a Japanese company I. C. Spots Inc. Spots will pay forthe order in 60 days. […]

According to the hedging principle permanent assets should befinanced with _____ liabilities. A. fixed B. permanent C. currentD. spontaneous