A project's contribution to firm risk is relevant for undiversified investors or when bankruptcy
costs exist.
Indicate whether the statement is true or false
TRUE
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The primary purpose of a stock split is to
a. increase paid-in capital b. reduce the market price of the stock per share c. increase the market price of the stock per share d. increase retained earnings
A company borrowed $28,000 by signing a 180-day promissory note at 6%. The total to be paid at maturity of the note is: (Use 360 days a year.)
A. $35,280.00 B. $33,740.00 C. $28,840.00 D. $34,860.00 E. $34,020.00
Felicia goes through an involuntary bankruptcy proceeding. An invol¬un¬tary bankruptcy occurs when
a. creditors are forced to accept a discharge of a debtor's debts. b. a debtor is unable to pay his or her debts as they come due. c. a debtor's creditors force the debtor into bankruptcy proceedings. d. a debtor's debts exceed the fair market value of his or her assets.
Three ways that savings can be transferred through the financial markets include all of the
following EXCEPT A) indirect transfer using the investment banker. B) indirect transfer using the venture capital firm. C) indirect transfer using the financial intermediary. D) direct transfer of funds.