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Question 4 3 pts Corporations can finance their operations in which of the following ways? (Select ALL that apply): Issuing stock Issuing bonds Creating a

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Question 4 3 pts Corporations can finance their operations in which of the following ways? (Select ALL that apply): Issuing stock Issuing bonds Creating a hybrid instrument (preferred stock) Paying dividends to shareholders Question 5 3 pts The following are typically characteristics of equities? (Select ALL that apply): Voting Rights High liquidation preference Minimal risk relative to corporate bond Fractional ownership in a company Question 6 4 pts Company A: Issues 10 Million shares of stock at $10 per share. Company B: Issues 1 Million shares of stock at $100 per share. Assume that all other fundamental aspects of these businesses are identical. An investor looking to invest $1,000 would likely have the following preferences? (Select ALL that apply): The investor would prefer to purchase shares in company A since they are cheaper Since stock represents fractional ownership in each business, the investor should have no preference (assuming transactional costs are equal), since investments in each company are essentially identical opportunities The opportunity cost of investing in Company B is higher since the stock price is higher Company B represents a better value for money

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