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Question 1 (26 points: 2 points each) (Answer the following with the best one or two-word answers) a) What is a provision incorporated into a

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Question 1 (26 points: 2 points each) (Answer the following with the best one or two-word answers) a) What is a provision incorporated into a bond issue that gives the issuer the right to redeem the security at a specified price? b) What is the name for the date on which the right to the current dividend no longer accompanies a share of stock? c) What is the name for the discount rate at which investments have a zero net present value? d) What is the name for stock that has been repurchased by the firm (and not retired)? e) What is the name for a constant stream of cash flows that continues for a fixed amount of time? f) What is the name for the costs of conflicts of interest (incentive costs) among stockholders, bondholders, and managers? These costs may include the costs of providing managers with an incentive to maximize shareholder wealth and then monitoring their behavior, and the cost of protecting bondholders from shareholders. g) What is the term for the difference between current assets and current liabilities? h) What is the name for short-term, unsecured promissory notes issued by large finance corporations? i) What are bonds (issued under the same indenture) such that a proportion of them come due (mature) each year? 1) What is the name of the bond issue which pays the coupon only if it is earned (i.e.only if the firm earns a profit)? k) What is the name for a short-term option to buy a specified number of shares of a new issue of securities at a "subscription" price? 1) What is the name for the number of years required for a firm to recover its initial investment in a project from the cash flow it generates? m) What is the name for the maximum rate that a firm can grow at without increasing its overall leverage

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