The conflict of preferences occurs because. O a. Customers of firms have different needs to those assumed by suppliers O b. Primary investors want low-cost liquidity and certainty, and the ultimate borrowers want long term risk-bearing capital O . Primary investors want a completely risk-free investment with high returns and borrowing firms offer only high risk/low return as their securities O d. Preference shares do not carry a sufficiently high dividend, given their risk

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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The conflict of preferences occurs because
O a. Customers of firms have different needs to those assumed by suppliers
O b. Primary investors want low-cost liquidity and certainty, and the ultimate
borrowers want long term risk-bearing capital
O .Primary investors want a completely risk-free investment with high returns and
borrowing firms offer only high risk/low return as their securities
O d. Preference shares do not carry a sufficiently high dividend, given their risk
Transcribed Image Text:The conflict of preferences occurs because O a. Customers of firms have different needs to those assumed by suppliers O b. Primary investors want low-cost liquidity and certainty, and the ultimate borrowers want long term risk-bearing capital O .Primary investors want a completely risk-free investment with high returns and borrowing firms offer only high risk/low return as their securities O d. Preference shares do not carry a sufficiently high dividend, given their risk
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