An auction is a market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers

Finance theory suggests that the current market value of a bond is based upon which of the

following? A) the future value of interest paid on a bond B) the sum total of principal and interest paid on a bond C) the present value of a bond's par value plus the future value of the bond's present value D) the sum of the present value of the bond's interest payments and the present value of the principal

Firms may retain large amounts of cash to cover future potential needs that allows a firm to avoid ________

A) transaction costs and financial distress costs B) tax payments C) clientele effects D) none of the above