All of the following are potential advantages of commercial paper ...

[cnetterville]

All of the following are potential advantages of commercial paper EXCEPT
 
  A) ability to borrow very large amounts.
  B) lower interest rates than comparable sources of short-term financing.
  C) no compensating balance requirements.
  D) flexible repayment terms.

Question 2

Concentric Corporation has 10 million shares of stock outstanding. Concentric's after-tax profits
  are 140 million and the corporation's stock is selling at a price-earnings multiple of 18, for a stock
  price of 252 per share.
 
  Concentric's management issues a 40 stock dividend. What is the effect on
  an investor who owns 100 shares of Concentric before the dividend if Concentric's price-earnings
  multiple remains the same after the dividend is paid?
  A) The investor will own 100 shares worth 35,280.
  B) The investor will own 100 shares worth 25,200.
  C) The investor will own 140 shares worth 25,200.
  D) The investor will own 140 shares worth 35,280.

[Jayson]

Answer to Question 1

D

Answer to Question 2

C