27. The _________________________ rate of interest is typically the required rate of return on a three-month U.S. Treasury bill.

A) nominal

B) real

C) risk-free

D) premium

2) TRUE/FALSE The questions below

A)Preferred stock has a characteristic of debt financing since it provides a fixed, periodic cash payment.

B) Common stock gives the holder voting rights which permit selection of the corporation's Board of Directors.

C) The Gordon constant growth stock model is an approach to stock valuation that assumes that dividends grow at a constant annual rate (g) indefinitely.

D) In the case of liquidation, common stockholders are paid first, followed by preferred stockholders followed by bondholders.