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Identify whether each of the following is most likely (a) a debt or equity investment, and (b) a non-strategic or strategic investment. (a) Debt
Identify whether each of the following is most likely (a) a debt or equity investment, and (b) a non-strategic or strategic investment. (a) Debt or Equity Investment? (b) Non-Strategic or Strategic Investment? 1. 120-day treasury bill 2. A few common shares of a small oil company purchased with a temporary surplus of cash that will be held temporarily 3. 30% of the common shares of a company purchased in order to obtain a position on the board of directors 4. Bonds purchased with a temporary cash surplus that will not be held to maturity 5. 100% of the common shares of a company purchased to combine its operations with those of the investor 6. Five-year bonds intended to be held for the entire term of the bonds
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