Finc600 Week 8 Practice Quizb

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FINC600 Week 8 Practice Quiz
Click Link Below To Buy: http://hwcampus.com/shop/finc600-week-8-practice-quiz/ Corporate Finance
Week 8 Practice Quiz Question 1 of 25 4.0/ 4.0 Points
Indirect costs of bankruptcy are borne principally by:

A.Bondholders B.Stockholders C.Managers D.The federal government
Question 2 of 25 4.0/ 4.0 Points
Which of the following lists events in the chronological order from earliest to latest?

A.Record date, declaration date, ex-dividend date B.Declaration date, record date, ex-dividend date C.Declaration date, ex-dividend date, record date D.None of the above Question 3 of 25 4.0/ 4.0 Points
Dividends are decided by:
I) The managers of a firm
II) The government
III) The board of directors

A.I only B.II only C.III only D.I and II only Question 4 of 25 3.5/ 4.0 Points
Discuss some examples of the conflicts of interest that may arise between bondholders and stockholders when a firm is in financial distress.

Question 5 of 25 4.0/ 4.0 Points
The main advantage of debt financing for a firm is:
I) no SEC registration is required for bond issue
II) interest expense of a firm is tax deductible
III) unlevered firms have higher value than levered firms

A.I only
Question 6 of 25 4.0/ 4.0 Points
Capital structure of the firm can be defined as:
I) the firm's debt-equity ratio
II) the firm's mix of different securities used to finance assets
III) the market imperfection that the firm's manager can exploit

Question 7 of 25 4.0/ 4.0 Points
If the capital markets are efficient, then the sale or purchase of any security at the prevailing market price is:

A.Always a positive NPV transaction B.Generally a zero NPV transaction…...

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