iii$)$ Dividends in arrears relate to

a$.$ Callable preferred shares

b$.$ No par preferred shares

c$.$ Preferred shares with a cumulative dividend feature

d$.$ Convertible preferred shares

iv$)$ Retained earnings are

a$.$ The total value of common shares and preferred shares issued and outstanding

b$.$ The same as profit

c$.$ The cumulative profit $($or loss$)$ since incorporation that has not been paid out in dividends

d$.$ The value of dividends paid out since incorporation.

v$)$ Which of the following is a disadvantage of using debt financing compared to equity financing?

a$.$ The interest on the debt must be paid

b$.$ Income tax savings result

c$.$ Earnings per share and return on equity may be higher

d$.$ Shareholder control is not affected

vi$)$ Which of the following is a factor considered in establishing the present value of a bond?

a$.$ Face value to be repaid at maturity

b$.$ Market interest rate

c$.$ Contractual interest rate

d$.$ All of the above