Which of the following statements is CORRECT?
A. If a 10-year, $1,000 par, 10% coupon bond were issued at par, and if interest rates then dropped to the point where rd = YTM = 5%, we could be sure that the bond would sell at a premium above its $1,000 par value.
B. Other things held constant, a corporation would rather issue noncallable bonds than callable bonds.
C. Other things held constant, a callable bond would have a lower required rate of return than a noncallable bond.
D. Reinvestment rate risk is worse from an investor's standpoint than interest rate price risk if the investor has a short investment time horizon.
E. If a 10-year, $1,000 par, zero coupon bond were issued at a price that gave investors a 10% yield to maturity, and if interest rates then dropped to the point where rd = YTM = 5%, the bond would sell at a premium over its $1,000 par value.
Answer: A
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The Dayton Corporation began the current year with a retained earnings balance of $32,000 . During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000 . Compute the year-end retained earnings balance
a. $34,000 b. $37,000 c. $41,000 d. $44,000
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A) foreign purchasing agent B) export broker C) export merchant D) export management company E) freight forwarder
Which three groups of marketers help satisfy a customer's needs?
What will be an ideal response?
If markets are in equilibrium, which of the following conditions will exist?
A. Each stock's expected return should equal its realized return as seen by the marginal investor. B. Each stock's expected return should equal its required return as seen by the marginal investor. C. All stocks should have the same expected return as seen by the marginal investor. D. The expected and required returns on stocks and bonds should be equal. E. All stocks should have the same realized return during the coming year.