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What is the impact to the market value of a companys equity as its book value of equity increases? A. Market Value increases by the

What is the impact to the market value of a companys equity as its book value of equity increases?

A.

Market Value increases by the same amount

B.

Market Value decreases by the same amount

C.

There is no set relationship to determine the impact

D.

Market Value remains constant

Investors who purchase bonds having lower credit ratings should expect:

A.

higher purchase prices

B.

higher default possibilities

C.

lower yields to maturity

D.

lower coupon payments

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