The concept of adverse selection helps to explain Group of answer choices A) why indirect finance is more important than direct finance as a source of business finance. B) which firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets. C) why direct finance is more important than indirect finance as a source of business finance. D) only A and B of the above. E) only A and C of the above.

Thoroughly discuss why the asymmetric information is an obstacle to the direct finance? Give examples of moral hazard and adverse selection problems and possible solutions.

1.Which of the following is not something that you would consider when evaluating the optimal capital structure? d. Security Rating. b. EBIT-EPS Analysis. a. Agency Costs. f. Neither the second nor fourth answer is correct. c. Taxes. e. All of the above are considered when determining the optimal capital structure. 2.Which of the following is an argument for the relevance of dividends? b. Reduction of uncertainty. a. Informational content. c. Some investors' preference for current income. d. All of the above. 3.All of the following are true of stock splits EXCEPT: a. Market price per share is reduced after the split. d. Proportional ownership is unchanged. b. The number of outstanding shares is increased. c. Retained earnings are changed.

Which of the following statements is incorrect? Select one: A. It is possible for markets to be efficient with respect to some information and inefficient with respect to other information B. It is possible for some markets to be more efficient than others C. The market is likely to be more efficient with respect to companies where there is greater analyst following D. The market is totally efficient with respect to companies providing regular dividends to investors

What is "Intermediation" and why do we use Financial Intermediaries, instead of direct finance, for the most part?

Question1. Arbitrage is limited because the wealth of arbitrageurs is limited.  Discuss this statement in the context of those who are managing their own money and those who are managing other people’s money. Question 2. Differentiate the following terms and concepts: a,Primacy and recency effects b. Salience and availability c. Fast-and-frugal heuristics and bias-generating heuristics d. Autonomic and cognitive heuristics  Please include refernces and in text citations.

Explain why very small to medium-size enterprises (SMEs) might face problems in obtaining appropriate sources of finance. In your answer pay particular attention to problems and issues associated with: Uncertainty concerning the business; Assets available to offer as collateral or security; and Potential sources of finance for very new SMEs excluding sources from capital markets. I need a detailed response to this question.

Which one of the following statements about book value and market value is correct? Group of answer choices a. Both book value and market value are forward-looking. b. Both book value and market value account for all forms of assets and liabilities of a firm. c. The market value of equity should not differ much from the book value of equity. d. Decision-making should be based on market value instead of book value.

What is meant by the term ‘financial distress’. If we assume that financial distress exists, explain how and why financial distress would cause a firm’s equity to become more risky.

Which of the following statement is incorrect about the Peking Order Theory? A.Firms with high ratios of fixed assets tend to have higher debt ratio.The evidence exclusively supports the peking order theory B.When exernal finance is required,firms issue debt first and equity as a last resort C.Most profitable firms borrow less not because they have lower target debt but because they don't need external finance D.Firms prefer internal finance since funds can be raised without sending advers signals