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36. value of a fixed-income security is the possibility that interest rates will rise and cause a decrease in a. Market risk b. Interest rate
36. value of a fixed-income security is the possibility that interest rates will rise and cause a decrease in a. Market risk b. Interest rate risk c. Reinvestment risk d. Coupon rate risk 37. The five basic principles of finance include all of the following except: a. Cash flow is what matters. b. Money has a time value lacremental profits determine value. d. Risk requires a reward 38. Future Gadgets Inc. expects to pay a dividend of $3.01 per share in one year. The current price of Future Gadgets' common stock is $49.92 per share.Flotation costs for issues of new common stock are 10% of market price. What is the cost of internal common equity (retained earnings) if the long-term growth in dividends is projected to be a. 8.60% b. 10.03% . 13.11% d. 14.28% 10 of 11
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