Corporations' separation of ownership and management can result in

Group of answer choices

agency problems.

adverse selection.

moral hazard.

free riding.

A firm's current and quick ratios are 1.4 and 0.9, respectively. Given this, the firm certainly

Group of answer choices

has more cash than inventory.

has more current liabilities than it does current assets.

pays cash for its inventory.

has positive net working capital.

Which one of the following has the highest effective annual rate?

Group of answer choices

7 percent compounded annually

7 percent compounded semiannually

7 percent compounded daily

7 percent compounded quarterly

If a bond's coupon rate is greater than its yield to maturity, the bond

Group of answer choices

has reached its maturity date.

is priced at par.

is selling at a discount.

is selling at a premium.

If a loan has the same APR and EAR, the loan must

Group of answer choices

have a one-year term.

be amortized with each loan payment.

charge interest annually.

have a zero percent interest rate.