1. Cash beyond the firm's typical needs that is available for distribution to common shareholders is called "free cash flow" and consists of the following:
a. net cash flow plus depreciation.
b. net cash flow after payment of dividends.
c. net cash flow of the firm.
d. net cash flow less certain cash reinvested to keep the business competitive.
2. Although the maturity value of a bond is fixed, changes in current interest rates will:
a. affect the bond's yield.
b. influence the amount of the semiannual coupon payment.
c. b and c
d. inversely affect the market price of the bond.