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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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