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Question 13. 13. (TCO 5) One option for long-term corporate
financing is equity financing, and this is a popular choice because
a lender is always available to provide this type of financing.
it does not cost anything to sell in the primary market.
repayment doesn't have to be made for 10 years or more.
only interest must be paid for the first 5 years.
it does not have to be repaid.

Question 14. 14. (TCO 5) Which of the following statements is false?
Stockholders elect the board of directors.
Stockholders pay taxes on dividends.
Intelligent investors must be concerned about future after-tax profits.
Dividend payments may not be reduced or omitted at any time.
Corporate dividends may not always be paid in cash.
Question 15. 15. (TCO 5) What is the approximate market value for a
$1,000 corporate bond that pays 7% interest when comparable bonds
are paying 8% interest?
$800
$875
$70
$1,142
$1,000