Question
True/False (a) In perfect capital markets, investment decisions depend on financing decisions. (b) A put option is a right to sell something at an unknown
True/False
(a) In perfect capital markets, investment decisions depend on financing decisions. (b) A put option is a right to sell something at an unknown price. (c) NFL season tickets are sold through rights offerings to old season ticket holders. (d) Corporate debt is a put option. (e) Junior debtholders have limited liability visavi senior debtholders. (f) Senior debtholders have personal liability visavi the tax collector. (g) Corporate debt is risk free. (h) Time preferences are irrelevant to investors in financial markets. (i) Top executives prefer safe to risky compensation, everything else equal. (j) The stock market allows investors to diversify.
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