Firms selling bonds in private placements is potential

Assignment Help Financial Management

Reference no: EM131859942

1. Which ones of the following statements are TRUE?

I. Everything else equal, the lower the interest rate the higher the value of a perpetuity

II. Among their functions, financial markets provide pricing information

III. Stock options can be used to mitigate agency problems

2. A major appeal for U.S. firms selling bonds in private placements is potential:

lower interest expense

greater regulatory protection

savings from not registering with the SEC or incurring an underwriting spread

fewer restrictions on subsequent borrowing activities

Reference no: EM131859942

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