Sales contests are usually held over periods of a year or more.

Which of the following statements about debt is true?

A) Increasing debt increases the firm's flexibility. B) As debt increases, distress costs decrease. C) Using debt causes a loss of ownership by the firm. D) Using debt allows the firm to earn money using someone else's money. E) As the level of debt increases, the firm's credit rating begins to matter less.

Growth stocks tend to

A) be those of more established companies. B) offer great opportunities for capital appreciation. C) pay high dividends. D) be favored by more conservative investors.