Samuel owns a bond with a par value of $5,000 and a coupon rate of 5 percent. He will receive _____ in annual
interest until the bond reaches maturity, or he sells the bond to someone else
a. $75
b. $50
c. $250
d. $500
c
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Which of the following measures can be used to evaluate a company's ability to meet future debt obligations after paying income taxes and interest and making capital expenditures?
a. Earnings per share b. Net income c. Cash flow adequacy ratio d. Net increase or decrease in cash and cash equivalents
Preferred stockholders ________.
A) are guaranteed that they will not have a loss on their investment B) are guaranteed to receive an annual dividend payment C) receive a set percentage of corporation net income D) receive a dividend preference over common stockholders
U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions. Which of the following is/are not true?
a. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits. b. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits. c. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives. d. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method. e. all of the above
Which of the following is considered as a liability in the balance sheet of a firm?
A. Accounts receivable B. Corporate bonds C. Retained earnings D. Common stock E. Plant and equipment