A. Rate of return
B. Rate of exchange
C. Rate of intrinsic stock
D. Rate of extrinsic stock
A. cash flow decision
B. cost decision
C. same decisions
D. different decisions
A. terminal value
B. existed value
C. quit value
D. relative value
A. 8.57 times
B. 0.0857
C. 0.11 times
D. 0.11
Which of the following terms refers to the use of debt financing?
A. Operating Leverage
B. Financial Leverage
C. Manufacturing Leverage
D. None of the given options
When the market’s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
A. Premium
B. Discount
C. Par
D. Cannot be determined without more information
If the bond’s price is higher than its par value, it will sell at a premium because its interest rate is higher than current prevailing rates..
A. Payment interest
B. Par interest
C. Coupon interest
D. Yearly interest rate