Please mark T for true or F for false in space next to each statement. 12. ____ If a company experiences distress or indirect costs, it must later go bankrupt. 13. ____ All stock must have a maturity date.

14. ____ Shelf registration is what a startup business uses to raise capital.

15. ____ The par value of common stock historically serves the purpose as being a minimum amount for which a share of a corporations stock must be sold.

16. ____ The market price of a corporations shares is not always equal to the book value of the shares (original value for which the shares were sold).

17. ____ A bond with a call provision enables the issuer to refinance the amount borrowed by the bond issuer at a lower rate when market rates go down.

18. ____ The annual return may only be calculated for stock, not bonds.

19. ____ A cash deficit unit is a party that needs financing (debt or equity) from the financial markets.

20. ____ One of the risks of borrowing money is the possibility of not being able to pay it back as agreed.