Which of the following statements about the differences between debt and equity is TRUE? Select one: a. Holders of equity securities have a contractual claim over the income and assets of the firm. b. Holders of debt securities have a residual claim over the income and assets of the firm. c. Holders of equity securities have a residual claim over the income and assets of the firm. d. Equity securities almost always have a limited life.

You buy a share for $19.25 and sell it exactly one year later for $17.08. During the year the share pays dividends totalling $1.2. What was the total return on this investment?

Which of the following is NOT a way of stating the overriding goal of financial management? Select one: a. Maximising the value of the firm. b. Maximising the wealth of shareholders. c. Maximing the firm's share price. d. Maximising revenue.