When Does a "Financing Gap" Occur

question 3

Multiple Choice

When does a "financing gap" occur?

• A)When a firm raises capital in the market by selling unequal amounts of bonds and equity, and the gap is the difference between the two amounts.
• B)When firms are unable to find investors to purchase their securities.
• C)When there is a period of time occurring between cash outflows from a project and the cash inflows from the project financing.
• D)Each of the above is an example of a financing gap.

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Definitions:

Alkalinity

the measure of the capacity of water or a solution to neutralize acids, often indicated by its pH level.

Concentration

In chemistry, the measure of the amount of a given substance contained in a unit volume of a liquid or solid material.

Dissolved

The process by which a solid becomes incorporated into a liquid to form a solution.

Conjugated Bilirubin

A form of bilirubin that is water soluble and has been processed by the liver, making it a useful measure of liver function and health.