According to trade-off theory-expensive form of financing

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1. According to the trade-off theory, which of the following is the least expensive form of financing??

a. ?Common stock

b. ?Preferred stock

c. ?Corporate debt

d. ?Retained earnings

e. ?Government subsidies

2. An open end mutual fund owns 1000 shares of krispy creme priced at $50. The fund also owns 2000 shares of Ben and Jerrys priced at $75 and 1000 shares of Pepsi priced at $65. The fund has 2000 of its own shares outstanding. The fund has a 5.85% load charge. What is the net asset value of the funds shares?

a. $140.25

b. $132.50

c. $265.00

d. $175.55

e. $125.18

Reference no: EM131930353

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