Stock options can be used to mitigate agency problems

Assignment Help Financial Management

Reference no: EM131860016

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

A. I and II only

B. I and III only

C. II and III only

D. I, II, and III

Could you please be kind enough and give the answer with explaning in detail?

2. Which ones of the following statements are FALSE?

I. Insurance Companies are not financial institutions

II. Preferred Stock is a type of Equity Securities

III. Hedge Funds are not financial intermediaries

A. I and II only

B. I and III only

C. II and III only

D. I, II, and III

Could you please be kind enough and give the answer with explaning in detail?

Reference no: EM131860016

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