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July 29, 2015

Homework Help: Banking

Posted by Bobby on Saturday, December 12, 2009 at 5:32pm.

Here's a few questions I'm stuck on...

What makes a stock liquid?

A. the reputation and financial strength of the corporations that issue them.

B. the fact that a secondary market exists for publicly traded stocks.

C. the fact that they are generally short term financial assets.


Why might a firm opt for long-term debt instead of equity?

A. the impact of U.S. tax laws.

B. the debt is always cheaper.

C. equity is always cheaper.

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