D. Decrease or the coupon rate increases. E. Decrease or the coupon rate decreases.
Question 7 The process of planning and managing a firm’s long-term assets is called:
A. Agency cost analysis. B. Working capital management. C. Financial depreciation. D. Capital structure. E. Capital budgeting.
Question 8
An efficient capital market is one in which:
A. Securities always offer a positive NPV. B. Taxes are irrelevant. C. All investments earn the market rate of return. D. Brokerage commissions are zero. E. Security prices reflect all available information.