Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: The market allocates capital to companies based on;

[A] Expected returns.

[B] Risk.

[C] Efficiency.

[D] All of the above

problem2: The purpose of secondary trading is to;

[A] Provide jobs for brokers and dealers.

[B] Provide liquidity and competition between investments.

[C] Provide a market for securities not handled in primary trading.

[D] Provide lower commissions than on the organized exchanges.

problem3: The payback method has several disadvantages, among them;

[A] Payback fails to choose the optimum or most economic solution to a capital budgeting problem

[B] Payback ignores cash inflows after the payback period

[C] A &B

[D] None of the above

problem4: A higher interest rate [discount value] would;

[A] Reduce the price of common stock.

[B] Reduce the price of corporate bonds.

[C] Reduce the price of preferred stock.

[D] All of the above.

problem5:  The risk premium is likely to be highest for;

[A] United State government bonds

[B] Corporate bonds

[D] Gold mining expedition

[E] Either B or C

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920047

Have any Question? 


Related Questions in Basic Finance

1 what does a z score below 2675 indicate according to the

1. What does a Z score below 2.675 indicate, according to the Altman model? 2. Indicate a practical problem with computing a Z score for a closely held firm. 3. No conclusive model has been developed to forecast financia ...

Explain why a call option with zero exercise price is

Explain why a call option with zero exercise price is equivalent to the underlying stock, assuming no dividends on the stock during the life of the option? Why might two calls or puts alike in all respects but time to ex ...

1 deriving from the conclusion of proposition i what is the

1. Deriving from the conclusion of Proposition I, what is the crux of M&M Proposition II? What is the natural relationship between the required returns on debt and on equity that results from Proposition II? 2. In what w ...

1 what are the general requirements regarding income

1. What are the general requirements regarding income, investments, and dividends with which a REIT must comply to maintain its tax-exempt status? 2. What are the three principal types of REITs? 3. What is a mortgage REI ...

Consider the following analysis the rise and fall of a

Consider the following analysis: The rise and fall of a bond's price has a direct inverse relationship to its yield to maturity, or interest rate. As prices go up, the yield declines and vice versa. For example, a $1,000 ...

1 what industrial and national capital structure patterns

1. What industrial and national capital structure patterns are exhibited globally? What factors seem to be driving these patterns? 2. What is the observed relationship between debt ratios and profitability, and the perce ...

Determine the mass transfer coefficient kc for the transfer

Determine the mass transfer coefficient, kc, for the transfer from a glucose sphere, 0.3 cm in diameter, which is sub merged in a 25°C aqueous stream flowing at a bulk velocity of 0.15 m/s. The mass diffusivity of glucos ...

Read one practical article of how psychology affects paying

Read one practical article of how psychology affects paying credit card debt. You can easily retrieve possible articles by doing an online search using the terms "psychology" and "credit card debt." Summarize the main po ...

1 what is the functional aggregation paradigm and why is it

1. What is the functional aggregation paradigm and why is it important? 2. Compare and contrast the three stages of functional aggregation. 3. Discuss the three challenges logistics faces as it manages on a process, rath ...

Ne at least three ways to reduce the possibility of scc

Name at least three ways to reduce the possibility of SCC ? Which is better, a relatively small anode or a large one and why? Is coating a fastener always helpful in fighting corrosion resistance, even if there are minor ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen