Which of the following securities will likely have the highest maturity risk premium?
A) Bbb-rated corporate maturing in 2020 actively traded on a major exchange
B) U.S. Treasury bond maturing in 2027
C) Aaa-rated corporate maturing in 2015 not actively traded
D) U.S. Treasury bill
B
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Refer to the following selected financial information from Gomez Electronics. Compute the company's debt-to-equity ratio for Year 2. Year 2 Year 1 Net sales$487,000? $427,950? Cost of goods sold 278,000? 251,820? Interest expense 11,400? 12,400? Net income before tax 68,950? 54,380? Net income after tax 47,750? 41,600? Total assets 320,500? 298,200? Total liabilities 172,900? 169,000? Total equity 147,600? 129,200?
A. 2.17. B. 1.85. C. 0.85. D. 3.30. E. 1.17.
Which of the following grants a person the right to use real property for a specified period of time?
A) lease B) mortgage C) sale D) barter
[The following information applies to the questions displayed below.]Farmer Company purchased equipment on January 1, Year 1 for $82,000. The machines are estimated to have a 5-year life and a salvage value of $4,000. The company uses the straight-line method.At the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life?
A. $3,900 B. $4,400 C. $6,240 D. $7,040
WorldCom's accounting issues involved capitalization of ordinary expenses
Indicate whether the statement is true or false