Question :
41.Payments to preferred shareholders fixed in amount, but they can : 1953279
41.Payments to preferred shareholders are fixed in amount, but they can be withheld if the company wishes.
a.True
b.False
42.Corporation A has a capital structure of 40 percent equity and 60 percent debt, while Corporation B has a capital structure of 70 percent equity and 30 percent debt. Corporation A has the most conservative capital structure.
a.True
b.False
43.In liquidation, shareholders must wait until creditors are paid; as well, preferred equity precedes common equity.
a.True
b.False
44.Junk bonds are so called because they pay unattractive interest rates to holders.
a.True
b.False
45.High-grade corporate bonds rate low in terms of risk and high in terms of expected returns.
a.True
b.False
46.If a company fails to make a bond payment, the company is in default.
a.True
b.False
47.The two primary sources of debt financing are pledging accounts receivable and selling bonds.
a.True
b.False
48.Equity financing puts more constraints on management than debt financing.
a.True
b.False
49.High quality cyclical common stocks are riskier than medium quality preferred shares.
a.True
b.False
50.Small businesses often fail to consider venture capital as a source of funding, and they are notorious for not planning cash-flow needs properly.
a.True
b.False
