Which statement is correct? A. Liquidity is the ease with which an asset can be converted into another asset. B. none of the above C. Liquidity is the efficiency with which an asset can be converted into cash. D. Liquidity is the ease with which an asset can be converted into cash. E. Liquidity is the efficiency with which an asset can be converted into another asset. You borrow $500 from your friend, and he agrees to let you pay it back in two years. A. You issued a note to your friend. B. Your friend issued you a bond. C. You bought a bill from your friend. D. You sold your friend a bond. E. Your friend sold you a note. Which statement is false? A. A corporation with positive net income must pay a dividend to its common shareholders. B. Shareholder dividends are tax-deductible. C. Shareholders get their dividends before bondholders get theirs. D. As a general rule, a higher P/E ratio indicates a less risky stock. E. All of the above are false. Which statement is true? A. Financial statements reflect economic costs. B. Year-over-year decreases in liabilities are sources of cash. C. A stock with a beta of 1.00 has the total risk of the market portfolio. D. Shareholders have the prior claim to the cash flows of a corporation. E. None of the above are true