Question: 5 6 7 8 needs mostly the answers please Question 5 3 pts Which of the following is true? O Both common and preferred share
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Question 5 3 pts Which of the following is true? O Both common and preferred share dividends are paid from profits, not from revenue. O Both common and preferred share dividends are paid fiam revenue, not from profits. Common share dividends are paid from profits, preferred from revenue. Common share dividends are paid from revenue, preferred from profits. Question 6 3 pts A company made a profit this year. The greater the dividend payout ratio (but less than 1), the will be the increase in the company's book value: O smaller O larger O unchanged Question 7 3 pts Abbot's Barber Shops and Costello's Barber Shops have the same capitalization: $1.5 million equity. $0.5 million debt. Abbot's owns $1.9 million worth of equipment and $100,000 in cash. Costello's owns $2 million worth of equipment. How do their leverage Tatios compare? O Abbot's is greater Costello's is greater The same Question 8 3 pts Which of the following is true of bonds issued by corporations but not by the U.S. Treasury? O They may default They pay coupons They may be priced at a discount Their prices may change
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