Q21 1 Point If a debenture is senior, it: Choice 1 of 5:Has a higher priority than tax claims. Choice 2 of 5:Has a higher priority than subordinated debt. Choice 3 of 5:Only 'Has a higher priority than subordinated debt' and 'Has priority to preference equity claims. ' Choice 4 of 5:All of the above . Choice 5 of 5:Has priority to preference equity claims. Q22 1 Point Red is being acquired by Green for 22,000 worth of Green equity. Red has 3,330 shares outstanding with a market value of 2.5 a share. Green has 7,000 shares of equity outstanding at a price of 13.2 a share. The net present value of the acquisition is 9,275. How many new shares of Green equity will be issued to complete this acquisition? Choice 1 of 5:1,950 shares. Choice 2 of 5:None of these are correct. Choice 3 of 5:1,750 shares Choice 4 of 5:1,503 shares Choice 5 of 5:1,956 shares Q23 1 Point A general partner: Choice 1 of 5:cannot lose more than the amount of his/her equity investment. Choice 2 of 5:has more management responsibility than a limited partner. Choice 3 of 5:is the term applied only to corporations which invest in partnerships. Choice 4 of 5:faces double taxation whereas a limited partner does not. Choice 5 of 5:has less legal liability than a limited partner