equal the future value of the time period is one year Increase as the number of periods increases None of these choices correctly relates the present value to the other variables increase as the future value increases Question 7 Which of the following are advantages of the corporate form of business ownership relative to other forms? Select one or more correct answers. Easier to transfer ownership Ability to raise capital Limited liability for owners Lightly regulated O Unlimited life Easy to start Double taxation Separation of ownership and management Question 8 Easy to start Double taxation Separation of ownership and management Question 8 All else constant, a bond will sell at when the yield-to-maturity is the coupon rate. Select one or more correct answers. par; higher than O par; equal to a discount; higher than O a discount; equal to O a discount; lower than O a premium; equal to a premium; higher than par; lower than O a premium; less than a premium less than Question 9 The decision by WSB Inc. to issue additional shares of stock is an example of which one of the following? Select one or more correct answers. capital budgeting a primary market transaction capital structure a secondary market transaction net working capital decision working capital management O agency costs Question 10 There are two ways to make money when you own a bond. Consequently, there are two components to the tot are those two components? Select one or more correct answers. O working capital management O agency costs Question 10 1 pts There are two ways to make money when you own a bond. Consequently, there are two components to the total return you receive. What are those two components? Select one or more correct answers. current yield capital gains yield periodic rate yield-to-maturity discount yield premium yield O coupon rate Question 11 ob deposits $1,000 into an account that pays 6.5% interest compounded annually. Jane deposits $1,000 into an account made today and will be held for five years. Which of the following statements premium yete coupon rate Question 11 1 pts Bob deposits $1.000 into an account that pays 6.5% interest compounded annually. Jane deposits $1.000 into an account that pays 6.5% simple interest annually. Both deposits were made today and will be held for five years. Which of the following statements are true concerning these two accounts? Select one or more correct answers. At the end of the five years, Jane and Bob will have earned the same amount of simple interest. Jane will never earn any interest on interest. At the end of one year, both Bob and Jane will have the same amount in their accounts. At the end of the five years, Bob made the better investment decision. At the end of the first year, Jane will have less in her account than Bob. At the end of five years, Jane will have more money in her account than Bob has in his. Question 12 A bond that makes a single payment at maturity which contains all the loan's interest and principal is called Select one or more correct answers. At the end of the the years. Besh made the bettent de At the end of the first year are will have less in her own that At the end of five years, ane will have more money in her account than Bob has in his D Question 12 1 pts A bond that makes a single payment at maturity which contains all the loan's interest and principal is called Select one or more correct answers. O a zero coupon bond an American-style bond a pure discount bond O a junk bond ( a callable bond O a debenture a European-style bond Question 13