20) If the efficient market hypothesis holds, investors should expect 1) to receive a fair price for their security 1) to earn a normal rate of return on their investments 11) to be able to pick stocks that will outperform the market A) I only B) II only C) III only D) I and II only 21) A firm has $100 million in current liabilities, $200 million in long-term debt, $300 million in stockholders equity, and total book assets of $600 million. There are 100 million shares outstanding with a share price of $16. Calculate the debt ratio for the firm. A) 11.1 percent B) 66.7 percent C) 50 percent D) 33 percent 22) In the case of Facebook, which has issued Class A and Class B shares, I) both classes of shares have the same cash-flow rights; II) both classes of shares have the same control rights; III) both classes of shares have different cash-flow rights; IV) both classes of shares have different control rights A) I and II only B) II and III only C) I and IV only D) III and IV only 23) The following are characteristics of preferred stock except it 1) pays fixed dividends; II) can demand payments of cumulative dividends; III) has voting rights A) I only B) I and II only C) III only D) II only