1. Other things equal, a firm can grow more rapidly without raising new capital if:
A) it pays out a small proportion of earnings.
B) it has a low profit margin.
C) it has a high ratio of debt to assets.
D) it has a low ROE.
2. Which of the following statements is correct.
a. the new York stock exchange is an auction market, and it has a physical location.
b. home mortgage loans are traded in the money market
c. if an investor sells shares of stock through a broker, then it would be a primary market transaction
d. capital markets deal only with common stocks and other equity securities
e. although the distinctions are blurring, investment banks generally specialize in lending money, whereas commercial banks typically help companies raise capital from other parties.