1. Which of the followings is NOT part of the fundamental analysis process discussed in this course when analyzing equity securities?
A. Industry analysis
B. Book building
C. Top-down approach
D. Company analysis
E. Domestic and global economic analysis
2. A firm will usually increase the ratio of short-term debt to long-term debt when
short-term debt has a lower cost than long-term equity.
future interest rates are expected to increase.
long-term debt has a lower cost than long-term equity.
future interest rates are expected to decrease.