The higher an organization's capital costs, the greater the opportunity cost of holding idle cash

Indicate whether the statement is true or false


T

Business

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When a bond has been issued at a discount, the carrying value at the end of one period is equal to the carrying value at the beginning of the period minus the amount of discount that was amortized during the period

Indicate whether the statement is true or false

Business

Which of the following statements is CORRECT?

A. An indenture is a bond that is less risky than a mortgage bond. B. The expected return on a corporate bond will generally exceed the bond's yield to maturity. C. If a bond's coupon rate exceeds its yield to maturity, then its expected return to investors exceeds the yield to maturity. D. Under our bankruptcy laws, any firm that is in financial distress will be forced to declare bankruptcy and then be liquidated. E. All else equal, senior debt generally has a lower yield to maturity than subordinated debt.

Business

Parent Item A requires two units of Item B and three units of Item C. Upon production of 500 units of Item A, it was calculated that 1,000 units of Item B were used in the production process. This an example of ______.

A. pegging capability B. where-used analysis C. netting analysis D. backflushing

Business

A power given as security creates a relationship of agency and actual authority

a. True b. False Indicate whether the statement is true or false

Business