A firm's cost of financing, in an overall sense, is equal to its

Answer

		A. weighted average cost of capital.
		B required yield that investors seek for various kinds of securities.
		C required rate of return that investors seek for various kinds of securities.
		D all of these.

The Securities Act of 1933 is primarily concerned with

Answer

		A. original issues of securities.
		B. secondary trading of securities.
		C. national securities market.
		D. protecting customers of bankrupt securities firms.

A serial bond repayment plan involves a

Answer

		A. lump-sum payment at maturity.
		B. conversion of debt to common stock.
		C. an early redemption of all debt.
		D. series of installments to retire the debt over the life of the issue.

______________ occurs when a company is broken up into smaller divisions and sold for a profit.

Answer

		A. Liquidation
		B. Internal reorganization
		C. Chapter 11
		D. Restructuring

A "subordinated debenture"

Answer

		A. must be transferred with the bond to which it is attached.
		B. is used mainly by railroad companies and usually specifies equipment as collateral.
		C. entitles the bondholder to purchase shares of common stock at a specific price.
		D. is an unsecured bond with an inferior claim on assets in the event of liquidation.