If a firm wants to finance a new project, it can obtain financing by
A) using its retained earnings. B) issuing and selling new shares of stock.
C) selling corporate bonds to the public. D) all of the above.
D
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Which of the following items is not one of the key functions of prices in the market system?
A) coordination B) measuring desire C) profit D) measuring scarcity
Opportunity cost can be best defined as
A. all sunk costs. B. the value of the best alternative given up when making a choice. C. the explicit cost of an activity. D. the cost of making one additional unit.
Over the next three years, the expected path of 1-year interest rates is 4, 1, and 1 percent. The expectations theory of the term structure predicts that the current interest rate on 3-year bond is
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.
Economists have no concern that children on welfare might be more likely to end up on welfare as adults
a. True b. False