1. Preference shares are often thought of as being more like debt than equity. Which of the following rules explains this?

1. The fixed nature of participation in profits
2. The ability to make capital gains or losses
3. The ability to buy and sell preference shares
4. The tax treatment of preference dividends

2. The cost of monitoring management is considered to be an

1. Bankruptcy cost
2. Transaction cost
3. Institution cost
4. Agency cost

3. Interest rates, tax raises and market risk premium are factors which an/a

1. Firm cannot control
2. Industry cannon control
3. Industry cannot control
4. Firm must control