Equity securities are certificates of ownership of a corporation. True A large number of investors in equities actually own through pension or retirement funds. True Companies raise capital in secondary markets by issuing new securities. False The common stockholders of a company have unlimited liability. False Preferred stockholders are not …
Convertible bond:Can be converted into common stock under certain conditions- usually at the owner’s option, for a specified number of shares of the corporation’s common stock.Generally, the coupon rate on a convertible bond is 100 percent lower than the rate paid on traditional bonds.The bond is trading at a high …
Jackie Flynn bought a new boat for $16,000. She put a $3,000 down payment on it. The bank’s loan was for 60 months. Finance charges totaled $4,800. Her monthly payment is: … The APR represents the: True effective annual rate of interest charged by seller The finance charge is equal …
Which of the following statements about managerial accounting is incorrect?Select one: a. Managerial accounting information is used primarily by managers within the organization. b. Managerial accounting information is prepared in accordance with rules established by outsiders (generally accepted accounting principles [GAAP]). c. Managerial accounting is primarily forward looking, as opposed …
The goal of the capital budgeting decisions is to select capital projects that will decrease the value of the firm.(True/False) False When two projects have cash flows that are tied to each other, the projects may be classified as independent.(True/False) False When two projects are independent, accepting one project implicitly …
the cash value of a whole life insurance policy can be used as a source of loan collateral T borrowing to pay for a college education is a legitimate use of credit T commercial banks are generally more selective in granting loans than finance companies T if a loan has …
Financial markets allow for all but which one of the following?a. shift consumption through time from higher-income periods to lowerb. price securities according to their riskinessc. channel funds from lenders of funds to borrowers of fundsd. allow most participants to routinely earn high returns with low risk d. allow most …
to lower the cost of long term care insurance, bobbi can cover the costs of nursing home care through a combination of self-insurance and long-term care insurancebuy a long term care policy as soon as possible before costs increase due to advancing ageselect a longer waiting period (time between nursing …
Agency problems arise due to the separation of ownership and control and can arise between stockholders and managers or between stockholders and bondholders True The appropriate goal of a financial manager is to maximize stockholder wealth, maximize the price per share of the firm’s common stock, or to maximize the …
1) In comparing an ordinary annuity and an annuity due, which of the following is true?A) The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.B) All things being equal, one would prefer to receive an ordinary annuity compared to …