Star Corp. issued bonds two years ago with a 7% coupon rate. The bonds are currently trading for $928 in the market. Which of the following most likely has occurred since the time of issue?

A) Interest yields decreased
B) Inflation increased
C) Risk decreased
D) Real rates of return decreased


B) Inflation increased

Business

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What are the assumptions underlying cost-volume-profit analysis?

Business

Using the internal rate of return approach to ranking projects, which project(s) should the firm accept? (See Table 10.4 )

A) 1, 2, 3, 4, and 5 B) 1, 2, 3, and 5 C) 2, 3, 4, and 6 D) 1, 3, 4, and 6

Business

The average tax rate is the taxable income divided by the total tax liability.

Answer the following statement true (T) or false (F)

Business

If you randomly select a sample of n = 50 and a sample of n = 100 from the sample population, which one would you assume to be more representative of the population?

a. n = 50 b. n = 100 c. neither; they are equally accurate d. none of the above

Business