2.1) A document that is prepared by a company that seeks to raise equity funds on the market is known as:

- offer

- invitation

- proposal

- prospectus

2.2) according to the traditional approach of capital structure theory, increasing debt will result in:

-increased WACC

- increased profits

- lower profits

- lower WACC

2.3) the term capital structure refers to the mix of :

- long term debt, preferred stock and equity

- current assets and current liabilities

- total assets - liabilities

- shareholders equity

2.4)a debenture that is covered by certain assets of a company are known as:

- redeemable debenture

- secured debenture

- convertible debenture

- participating debenture