T8 KCT 8 (Tutorial)
Using the share information about Victoria Co. from KCT 5, and given that capital creditors of Victoria Co. are paid 14%, which of the following statements are TRUE ? (select all correct answers only, selecting the wrong answer will result in a mark penalty. selecting all answers will result in 0)

Question

T8 KCT 8 (Tutorial) 
 Using the share information about Victoria Co. from KCT 5, and given that capital creditors of Victoria Co. are paid 14%, which of the following statements are  TRUE ? (select all correct answers only, selecting the wrong answer will result in a mark penalty. selecting all answers will result in 0)

Answer

Victoira Co. shareholders are earning a return lower than the company capital creditors.

Answer

Victoira Co. shareholders are earning a return higher than the company capital creditors.

Answer

Victoria Co. shareholders can invest more, by buying more shares, because they are receiving an appropriate rate of return.

Answer

Victoria Co. shareholders should sell their shares and lend to Victoria Co. instead.

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T8 KCT 8 (Tutorial) Using the share information about Victoria Co. from KCT 5,...

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