1.Which of the following statements is true for a corporation with $5 million market value of equity, $8 million market value of assets, and 10,000 shares of outstanding stock?

A. Market value of liabilities exceeds market value of assets

B. Market value of liabilities equals $2.5 million

C. Book value per share equals $1,000

D. Market value per share equals $500

2. Which of the following is true regarding a firm with a total debt ratio of 25%? A. Stockholders equity is 3 times the total debt amount B. Stockholders equity is 50% of the assets C. Total assets less total liabilities equals 55% of the assets D. Liabilities are greater than stockholders equity