Question 1 (0.5 points) In an issue of new common shares by a small business, issuance costs can be as little as 2% of the issue amount.

options: True False

Question 2 (0.5 points)

One of the advantages of preferred stock financing, over debt financing, is that the omission of preferred dividends (failure to pay preferred dividends) does not bankrupt the business.

options: True False

Question 3 (0.5 points) Information efficiency means that there is in efficient financial markets, transparency and free disclosure of information necessary for making investment decisions.

options: True False

Question 4 (0.5 points) Subscription rights are generally valid for several years.

Options

True False