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The EVA of a firm is $6.25 million and the firm has 2.78 million outstanding shares. What is the maximum amount of dividend that can
The EVA of a firm is $6.25 million and the firm has 2.78 million outstanding shares. What is the maximum amount of dividend that can be paid to shareholders?
a. | $1.65 | |
b. | $4.41 | |
c. | $2.25 | |
d. | $3.89 | |
e. | $3.12 |
The greater a bond's default risk, the greater the:
a. | maturity value of the bond. | |
b. | risk of exercise of a call provision on the bond. | |
c. | investment in the bond by risk-averse investors. | |
d. | default risk premium (DRP) associated with the bond. | |
e. | interest rate stability of the bond in the long run. |
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