4. The following are debts in disguise:

a. I) accounts payable

b. II) leases

c. III) underfunded pensions

1. I only
2. II only
3. III only
4. I, II, and III

5. Which of the following characteristics do not apply to financial intermediaries?

I) they raise money from investors;

II) they invest in financial assets;

III) they mainly invest in real assets

1. I only
2. I and II only
3. II only
4. III only

7. According to the data, venture capital funds earn an average annual rate of return of about

Multiple Choice

1. 32 percent.
2. 24 percent.
3. 17 percent.
4. 12 percent.

11. A new public equity issue from a company with public equity previously outstanding is called a(an)

1. Initial public offering (IPO)
2. American depository receipt (ADR)
3. Seasoned equity offering (SEO)
4. Private placement

15.Firms can repurchase shares in the following ways:

1. I) open market repurchase;
2. II) tender offer;
3. III) Dutch auction;
4. IV) direct negotiation with a major shareholder