(6. True Falser 43. A financial intermediary is ac mediary is a company that takes monies from investors and then provides those monies to either sovereign or state & local governments perhaps corporations -- who need this capital to meet their budgetary obligations, to expand. A bank that takes deposits, such as money sitting in checking and savings accounts and then uses that money to make long-term commercial mortgage loans estate investors, is but one example of a financial intermediary. a. b. True False From an investor's perspective, a firm's preferred stock is generally considered to Sky than its common stock but more risky than its bonds because of where preferred stock resides in a firm's capital structure. However, from a corporate issuer's standpoint, these risk relationships are reversed: Bonds are the most risky for the firm because default on these obhgation would mean virtual certainty in filing for bankruptc itual certainty in filing for bankruptcy protection; preferred stock i next, and common stock is the least risky because eliminating dividend payments preferred or common stock does NOT mean virtual certainty in filing for bankrup protection True b. False PART IV: Answer the following questions. Show all work for full credit. 45. While sunning yourself on the bleachers at your friend's track meet, you overhear a acquaintance -- who is a director of an oil and gas company -- describe to his wife a recent business trip, including details relating to a possible disposition or liquidati. the company, or some of its assets. Among other things, your acquaintance mentio to his wife that there were several bidders, and that an announcement might occu following week. You are considering whether to call your broker to buy stock in th company, and whether to relay the information to close friends. Fully describe what action you should take and why [6 points)