1(a). (TRUE or FALSE?) Issuers of common stock generally promise to pay a fixed dollar amount of dividends to the investor but this promise always result in bankruptcy if it is broken.

1(b). (TRUE or FALSE?) Restrictive covenants of a bond may include limits on future borrowings by the bondholders, minimum working hours that must be maintained by the bondholders, and restrictions on dividends paid to bond holders.

1(c). (TRUE or FALSE?) Common stock has an infinite maturity and higher-priority claim to assets and earnings than bondholders.