the required rate of return decreases.

B and C are both correct.

the dividend growth rate increases.

the required rate of return increases.

not long term IOUs

bonds with no coupon payments

the most common bonds issued by companies

bonds that have the feature of convertibility into shares

none of the above

an audit to compare actual project results with the projected results

an audit of the condition of the assets at the end of the project

an audit of the profits and losses involved in projects

Zero coupon bonds make coupon payments but no principal payment at maturity

All of the above statements are true

Zero coupon bonds have no coupon payments but promise a single payment at maturity

Zero coupon bonds must sell for less than similar bonds that make periodic coupon payments

Debt holders, equity holders and preferred shareholders equally

Debt holders, preferred shareholders, equity holders

Equity holders, debt holders, preferred shareholders

Debt holders, equity holders, preferred

shareholders

a company's accounting

earnings

none of the above

a project's cash flow

a company's cash flow

rejected

accepted

considered in future years

none of the above

a debt instrument.

a hybrid instrument.

none of the above.

an equity instrument.