Why does equity generally cost more than debt financing?

Select an answer:

• More investors are willing to provide equity financing.
• More lenders are willing to provide debt financing.
• Lenders have legal protection, while investors do not.
• Investors have legal protection, while lenders do not.

Why do stock index funds have a higher rate of return than corporate bonds or savings accounts?

Select an answer:

• There are more people investing in stock index funds.
• There is less risk with a stock index fund.
• There is more risk with a stock index fund.
• More cash is required to invest in stock index funds.

Which indication does a balance sheet make?

Select an answer:

• a company's assets plus the company's owners' equity
• a company's total assets along with its liabilities and owners' equity
• a company's total assets along with its current and long-term liabilities
• a company's liabilities minus its owners' equity