Question
If a stocks required rate of return is 10% and the expected rate of return is 9%, the stock is believed to be ______ Undervalued.
If a stocks required rate of return is 10% and the expected rate of return is 9%, the stock is believed to be ______
Undervalued. | ||
Overvalued. | ||
Fairly-valued |
A 10-year $1,000 face value corporate bond has an annual coupon payment of 5% of the face value. The bond is currently selling at par ($900). Which of the following statement is NOT correct?
The bonds yield to maturity is 0%. | ||||||||||||||
The bonds current yield is 5%. | ||||||||||||||
The bonds capital gain yield is positive. | ||||||||||||||
The bonds capital gain yield is negative.
Which of the following statements is correct?
|
Which of the following statements is not true?
Common stock represents ownership, and ownership implies control. | ||
Stockholders elect directors, and directors hire management. | ||
Since managers are agents of shareholders, their goal should be maximizing stock price. | ||
There will be no agency problem if the founder is still the Chairman and CEO of the company. |
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