Question 1
A bond is
◦ a share of ownership in a company.
◦ a document that formally promises to repay a loan.
◦ a promise to pay a dividend.
◦ a non-contingent payment.
Question 2
Firms can finance capital spending by doing all of the following
except
◦ selling stock in the company.
◦ issuing bonds.
◦ borrowing from a bank.
◦ paying dividends.