After amortizing the principal, a debt security that makes the same dollar payment every year is referred to as a
A. coupon bond.
B. fixed-payment security.
C. discount bond.
D. perpetuity.
Answer: B
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Last year Rosenberg Corp. had $195,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?
A. 4.36% B. 4.57% C. 4.80% D. 5.04% E. 5.30%
Griffin has fallen prey to hiring only millennials in his new startup company. He feels that hiring someone from the Generation Xers will hold his company back regarding technology. What aspect of diversity does this represent?
A. age B. race and ethnicity C. gender D. ability
Given the following key factors and their importance weights, determine a total weighted evaluation for A3
Key Factor Importance Weights A1 A2 A3 K1 0.2 0.2 0.9 0.7 K2 0.7 0.8 0.5 0.4 K3 0.1 0.9 0.6 0.8 A) 0.69 B) 0.74 C) 0.59 D) 0.50 E) None of the above
Pricing is an important, but complex and difficult task. Define optimum price and briefly describe the four key factors for determining an optimum price.
What will be an ideal response?