Question
1. Bargaining power of suppliers is low if? Select the statement that is incorrect. a. There are many suppliers b. Suppliers products are standardized and/or
1.
Bargaining power of suppliers is low if? Select the statement that is incorrect.
a.
There are many suppliers
b.
Suppliers products are standardized and/or have substitutes
c.
The industry (to which they supply) makes up the majority of their revenues
d.
Suppliers pose a credible threat of forward integration
2.
Bond L currently sells for $X. Its face value is $1000, coupon rate 5% per year (coupons paid out semi-annually), and yield to maturity 2% per half-year. What will be the price of the bond 1 year from now, right after the coupon is paid out (assuming the yields stay unchanged)?
a.
Need more information to answer
b.
Less than $X
c.
Unchanged
d.
More than $X
Clear my choice
3.
ond B has 6 years to maturity, face value of 100, and a coupon rate of 3%; the bond pays coupons semi-annually. Market yield on similar securities is 2% per half year. You can buy bond B from a friend for $92.45. Should you do it?
5.
Which of the following shows evidence against semi-strong-form market efficiency?
a.
All the other choices
b.
Small-Firm Effect
c.
Book-to-Market Effect
d.
P/E Effect
a.
None of the above
b.
Yes, since $92.45 is lower than the bonds fair value.
c.
You are indifferent as the bond is fairly priced at $92.45.
d.
No, since $92.45 is higher than the bonds fair value.
4.
Some empirical evidence shows that firms with high B/M ratio tend to outperform those with low B/M ratio, which is against:
a.
Both weak-form and semi-strong market efficiency.
b.
Semi-strong market efficiency
c.
Weak-form Market efficiency
d.
Strong-form market efficiency
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