Equity holders face two sources of risks. One is based on the nature of the business the company is in, which we call the financingrisk. The other is the business risk. That is, because the company is partially financed by debt, that adds an extra piece of risk on equity holders.

- True

- False

Which of the following regarding the key features of debt and equity is most likely NOT correct?

		By investing in General Motor Co's corporate bonds and corporate equity, the investor owns a part of the company.
		The cash flow sequence to receive from corporate equity can be infinitely long. Thus, equity holders have strong incentives to care about the company's long term performance.
		Debt holders do NOT have voting rights.
		Debt holders enjoy very strong cash flow rights and voting rights