Which of the following is TRUE? O Managers should prefer equity capital to debt capital if they do want to share control rights of their company with capital providers. The value of a company is equal to its equity value plus debt value. Ordinary shareholders are promised a stable stream of dividends. The value of a bond can be obtained as the present value of all future interest and principal payments with the coupon rate as the discount rate. Companies' dividend payments to their shareholders are tax deductible. Question 2 1 pts You have just purchased an Australian Treasury Bill, which is a zero-coupon bond security with a positive yield to maturity. The yield to maturity has decreased by 0.5% immediately after your purchase. In which direction should the price have moved? NOTE: a zero-coupon bond is one that only pays a single payment (i.e., the principal amount) at maturity. No coupons are paid. O None of the other answers Cannot determine from available information Upwards Downwards O Price will remain unchanged