One disadvantage of the corporate form of business

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19.Question 195 PointsOne disadvantage of the corporate form of business ownership is the:Select the correct answer1.Limited liability protection provided for all owners.2.Firms ability to raise cash.3.
Double taxation of profits.4.Unlimited life of the firm.5.Difficulties encountered when changing ownership.
20.Question 205 PointsAll else held constant, interest rate risk will increase when the time to maturity:
21.Question 215 PointsThe costs of avoiding a bankruptcy filing by a financially distressed firm are classified as_____ costs.Select the correct answer
22.Question 225 Points
The market price of a bond increases when the:Select the correct answer
23.Question 235 PointsA firm has a debt-equity ratio of .64, a pretax cost of debt of 8.5 percent, and a requiredreturn on assets of 12.6 percent. What is the cost of equity if you ignore taxes?Select the correct answer1.16.38%
2.8.55%3.8.06%4.15.22%5.11.12%
24.Question 245 PointsUnder the _______ method, the underwriter buys the securities for less than the offering price and accepts the risk of not selling the issue, while under the _______ method, the underwriter does not purchase the shares but merely acts as an agent.Select the correct answer
25.Question 255 PointsThe cash flow resulting from a firm's ongoing, normal business activities is referred to asthe:
4.

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