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Multiple Choice (3 points per question) is the 1. The of a bond is what investors are willing to pay to buy one bond and

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Multiple Choice (3 points per question) is the 1. The of a bond is what investors are willing to pay to buy one bond and the principal amount the company borrows a) Price, Par Value b) Price, Coupon c) Par Value, Premium d) Premium, Par Value 2. Enterprise value is the value of the firm available to both creditors and shareholders. To calculate the value available only to shareholders given the enterprise value, you must: a) Subtract the amount of debt owed to creditors b) Multiply the earnings per share by the share price c) Multiply EBITDA by the book value multiple d) Add the amount owed to creditors

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