1. Which ones of the following statements are TRUE?
I. Everything else equal, the lower the interest rate the higher the value of a perpetuity
II. Among their functions, financial markets provide pricing information.
III. Stock options can be used to mitigate agency problems
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III
Could you please be kind enough and give the answer with explaning in detail?
2. Which ones of the following statements are FALSE?
I. Insurance Companies are not financial institutions
II. Preferred Stock is a type of Equity Securities
III. Hedge Funds are not financial intermediaries
A. I and II only
B. I and III only
C. II and III only
D. I, II, and III
Could you please be kind enough and give the answer with explaning in detail?