Question 1 (1 point)

A rights issue of shares involves:

Question 1 options:

	a prospectus
	the right to purchase new shares by the general public
	no dilution of the share price
	all of the above

Question 2 (1 point)

The costs of financial distress are:

Question 2 options:

	legal and administrative costs
	forced asset sales
	lower market value
	all of the above

Question 3 (1 point)

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A lease requires payments of $5,000 per month for 5 years. The first payment is due on the first day of the lease. This is an example of a:

Question 3 options:

	bad deal
	ordinary annuity
	annuity due
	none of the above

Question 4 (1 point)

On the ex-dividend date:

Question 4 options:

	shares no longer trade with the dividend
	the share price will fall
	the new share holder will not be entitled to the dividend
	all of the above