1) Which of the following is the correct payout order of a company filing for bankruptcy from last to first?

A) Common Stockholders, Bondholders, Preferred Stockholders

B) Bondholders, Preferred Stockholders, Common Stockholders

C) Bondholders, Common Stockholders, Preferred Stockholder

D) Common Stockholders, Preferred Stockholders, Bondholders

2) As bonds become less risky, the expected coupon payment will:

A) Increase

B) Decrease

C) Remain the same

3) If a bond contract includes a provision that provides an additional option to the bondholder, then all else equal, its yield should be:

A) The same

B) Higher

C) Lower

4) Which of the following is an Internal cash flow for a company?

A) Debt

B)Equity

C) Retained Earnings

D) Both A & B

5) Recently, most cash flow with US companies has come from:

A) Internally generated cash flow

B) Debt issues

C) Equity issues

D) Share repurchases

6) Which of the followingalwayshave voting rights in a company?

A) Bondholders

B) Preferred Shareholders

C) Common Stockholders

D) None of the above