1. The absolute priority rule establishes the order in which:
a) Claims are paid in a bankruptcy proceeding.
b) Firms are liquidated by the bankruptcy courts.
c) Reorganization events must occur.
d) Bankruptcy cases are heard by the courts.
2. The nominal rate of return on large-company stocks consists of a:
a) Risk-free rate of return plus an inflation adjustment.
b) Real rate of return plus the U.S. Treasury bill rate of return.
c) Risk premium plus the U.S. Treasury bill rate of return.
d) Risk-free rate of return plus a bond premium.