Which is not a feature of a debt instrument

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Reference no: EM132622219

Problem 1. Which of the following is NOT a feature of a debt instrument?

Select one:

a. Their prices do not fluctuate as much as shares
b. Periodic interest payments
c. Higher claim on assets of borrower than equity holders
d. A contractual claim against the borrower 

Problem 2. The conflict of interests between the goals of the firm's owners and those of its managers is:

Select one:

a. Serious only when sales volumes decline dramatically.
b. The antagonism theory.
c. The agency problem.
d. Reduced when the company is large.

Reference no: EM132622219

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