A firms debt: Group of answer choices

Is represented by the shares of stock given to the lender.

Makes the lender an owner of the firm.

Makes no legal promises of repayment.

Is a legal obligation between a lender and the firm.

Equity investors:

Group of answer choices

Receive a guaranteed rate of return.

Are protected from losses if the firm does poorly.

Are given bonds in return for the money they invest.

Share in the success of the firm.