1)Â Â Â When you go through an IPO you raise capital from venture capitalists. raise debt from a bank. sell...

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Finance

1)Â Â Â When you go through an IPO you
raise capital from venture capitalists.
raise debt from a bank.
sell shares to the general public.
issue preferred stock.Â Â
2)Â Â Â In the Principal/Agent relationship theAgent has
the right to dismiss the Principal.
no fiduciary responsibility towards the Principal.
inferior skills.
superior knowledge.
3)Â Â Â Which of the following is notan example of aPrincipal/Agent relationship?
Student/Professor.
Firm/Investment Bank.
Equity Holder/Management.
Management/Debt Holder.
4)Â Â The amount of debt that a firm can take on isaffected by
the Principal/Agent relationship between debt and equityinvestors.
covenants in the debt instruments.
market risk.
all of the above.
5)Â Â The tax deductibility of interest results in alower cost of capital for the firm.
Â Â Â Â Â Â True/False
6)Firms in the Death Stage will typically increase their debtload.
Â Â Â Â Â Â True/False

Answer & Explanation Solved by verified expert

3.7 Ratings (479 Votes)

1When you go through an IPO you C sell shares to the general public 2 In the PrincipalAgent relationship the Agent has D superior knowledge 3Which of the following is not an example of a PrincipalAgent See Answer

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