The Value of the Firm Is the Sum of All

question 26

Multiple Choice

The value of the firm is the sum of all claims against it. These marketed and non-marketed claims:

• A) increase in value together and are both bought and sold in the financial markets.
• B) trade-off against one another in value with marketed claims bought and sold in the financial markets but not non-marketable claims.
• C) decrease in value together and are both bought and sold in the financial markets.
• D) trade-off against one another in value with both marketed and non-marketed claims bought and sold in the financial markets.