1. Which ones of the following statements are TRUE?
I. Everything else equal, the lower the interest rate the higher the value of a perpetuity
II. Among their functions, financial markets provide pricing information
III. Stock options can be used to mitigate agency problems
2. A major appeal for U.S. firms selling bonds in private placements is potential:
lower interest expense
greater regulatory protection
savings from not registering with the SEC or incurring an underwriting spread
fewer restrictions on subsequent borrowing activities