Preferred stock is traded in the money market, while common stock is traded in the capital market
Indicate whether the statement is true or false
FALSE
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Which of the following is NOT acceptable in estimating uncollectible accounts receivable under GAAP?
a. The estimate of uncollectible accounts is based on a percentage of sales for the period. b. The estimate of uncollectible accounts is based on a percentage of the accounts receivable balance at the end of a period. c. The estimate of uncollectible accounts is based on an aging schedule. d. No estimate of uncollectible accounts is made; accounts are written off when it is determined they cannot be collected.
Dividing net profit by total assets shows a firm's:
A. current ratio. B. debt ratio. C. return on investment. D. net profit margin.
Everything else the same, if the yield curve is downward sloping, what is the yield to maturity on a 10-year Treasury coupon bond, relative to that on a one-year Treasury bond (T-bond)?
A. The yield on the 10-year bond is less than the yield on a one-year bond. B. The yield on a 10-year bond will always be higher than the yield on a one-year bond because of maturity premiums. C. It is impossible to tell without knowing the coupon rates of the bonds. D. The yields on the two bonds are equal. E. It is impossible to tell without knowing the relative risks of the two bonds.
An annuity is a stream of equal payments
Indicate whether the statement is true or false