Which one of the following is the equity risk arising from the capital structure selected by a firm?

	Strategic risk
	Financial risk
O	Liquidity risk
	Industry risk
	Business risk

Phil and Terry started a new business three years ago. Two years ago, they incorporated the business and issued themselves each 20,000 shares of stock. Last year, they took the company public in an IPO and issued an additional 100,000 shares of stock at that time. The offer price was $14 a share, the spread was 8 percent, and the lockup period was six months. The stock closed at $17 a share at the end of the first day of trading. During the first six months of trading, the stock had a price range of $13 to $23 per share. During the second six months of trading, the stock sold between $15 and $21 per share. Both Tracie and Amy purchased 100 shares at the offer price. Given this, which one of the following statements is correct? Ignore trading costs and taxes.

	Tracie could have earned a maximum profit of 100($23 - 17) on her investment.
	Phil could have sold 5,000 shares at $23 per share.
	The underwriters earned a spread equal to 8 percent of $17.
O	The maximum price at which Terry could have sold shares is $21.
	Amy paid 108 percent of $14 per share to purchase her 100 shares.

Faith wrote a check for $22 on Friday, May 6. The check cleared the bank on Wednesday, May 11. There were no other checks or deposits outstanding during the month. Given this, which one of the following statements is correct?

	On May 6, the available balance decreased by $22.
	On May 11, the available balance was $22 less than the ledger balance.
	On May 12, the ledger balance was $22 less than the available balance.
	On May 14, the available balance increased by $22.
O	On May 10, the ledger balance was $22 less than the available balance.