When a debtor sells collateral,the secured party automatically has an interest in the proceeds the debtor receives in exchange for the collateral.

Valuation techniques that reflect the amount that would be required currently to replace the service capacity of an asset is an example of:

A) the fair value approach.
B) the income approach.
C) the cost approach.
D) the market approach.

When the number of shares of common stock outstanding multiplied by the price per share is divided by the total market value of the firm the resulting value is defined as the:

A) Market weight of debt.
B) Debt-equity ratio.
C) Cost of capital ratio.
D) Capital structure weight.
E) Equity to market weight.

If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan,the interest rate is said to be:

A) floating.
B) non-variable.
C) unsecured.
D) sporadic.
E) flexible.