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A. Title Bars
B. Full Source
C. Video Tools
D. Reduced View
Answer: D
NEW QUESTION: 2
Drag the security features on the left to the specific security risks they help protect against on the right. (Not all options are used.)
Answer:
Explanation:
NEW QUESTION: 3
JK is seeking to raise finance for a project and the directors would prefer to take out a fixed rate bank loan repayable over the next 5 years. The project will increase the profit of JK even after taking into account the additional interest costs.
Which of the following statements about the use of a bank loan in this situation is true?
A. The interest on a bank loan is deducted from profit before dividends can be declared to equity shareholders each year.
B. In the long term servicing a bank loan is more expensive than servicing equity shares due to the higher risk for the lender.
C. Because the assets of a business belong to the equity shareholders, a bank loan should NOT be secured on the assets of the business.
D. A bank loan has high issue costs compared to an issue of equity shares because it takes longer to arrange.
Answer: A
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