By raising capital at lower cost, bonds lower risk for shareholders
Indicate whether the statement is true or false
F Bondholders have first claim on earnings, which means that shareholders will bear more risk when bonds are outstanding.
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In 2008, Cameron began his career with SBC. His starting salary was $32,000. By 2012, his salary increased to $35,000. If the CPI was 100.0 in 2008 and 107.5 in 2012, Cameron's 2012 real income is
A) $35,000. B) $32,558. C) $32,000. D) $37,625. E) $34,400.
The series of bank failures in 1907 occurred despite the creation of the Federal Reserve many years earlier
a. True b. False Indicate whether the statement is true or false
A "satisficer" is a person who
a. always chooses the best course of action. b. often chooses the worst course of action. c. makes decisions that are merely good enough. d. studies both economics and psychology.
Stellar Electronics sells all of the 20,000 GPS devices it produced for a price of $50 each. Every consumer who wants a GPS device from Stellar is able to buy one. This example shows ______.
a. market surplus b. individual equilibrium c. market equilibrium d. individual surplus