The valuation processes for stocks and bonds are about equally accurate. Evaluate this statement
Stock valuation is a great deal less accurate than bond valuation for two reasons. The biggest issue is related to the predictability of the future cash flows associated with the two securities. Bond payments quite reliable, because they're contractually guaranteed. Dividends and the eventual selling price of stocks, on the other hand, are generally uncertain. Second, the appropriate rate of return for use in present value computations is an estimate based on risk for stock, while it is easily observable in debt markets for bonds.
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It is necessary to post journal entries to the general ledger before preparing a trial balance
Indicate whether the statement is true or false
Shelton Brothers, Inc Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15. Refer to the information provided for Shelton Brothers, Inc What effect does recording the purchase of merchandise on July 7, 2012, have on Shelton's accounting equation?
A) Assets and liabilities increase. B) Liabilities increase and equity decreases. C) Assets and equity increase. D) Liabilities and equity decrease.
A company must assign mechanics to each of four jobs. The time involved varies according to individual abilities. Table 9-1 shows how many minutes it takes each mechanic to perform each job
If the optimal assignments are made, how many total minutes would be required for completing the jobs? A) 0 B) 4 C) 17 D) 16 E) None of the above
Suppose that you are beginning an investment plan. You have decided that you want to retire in 30 years with $1,000,000 in your bank account at that time. How much would you need to invest at the end each of the next 30 years if you could earn 8%?
A) $11,924,613.33 B) $83,860.16 C) $46,030.93 D) $22,045.16 E) $8,827.43