Question 1:

Question 2:

If a firm goes bankrupt and must be liquidated, and if less money is available than the balance sheet values of the bonds, preferred stock, and common equity, then some security holders will receive less than the book values of their investments. The priority system under our bankruptcy laws allocates funds first to preferred stock because of its preference, then to bonds, and then to common stockholders only if there are funds left over after paying off the preferred stock and bonds. True or false? True False Which of the following is true regarding annuities? annuities due result in higher payments ordinary annuities result in higher payments annuities due result in higher future values ordinary annuities result in higher future values