Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

true or flase for fiance 1.If interest rates rise, the price of existing bonds increases. 2. Corporations are obligated to pay cash dividends if they

true or flase for fiance
image text in transcribed
1.If interest rates rise, the price of existing bonds increases. 2. Corporations are obligated to pay cash dividends if they generate earnings. 3. An increase in risk should cause the value of common stock to fall. 4. Discounting refers to the process of bringing the future back to the present. 5.If the bank pays 5% compounded semi-annually, the true rate of interest is less than 5 % annually. 6. Net working capital is the difference between current liabilities and current assets. 7.Systematic risk is reduced through diversification. 8.The IRR equates the NPV and the cost of the investment. 9.Stock dividends increase the wealth of the stockholder who receive additional shares. 10. Beta coefficient and standard deviation may be used as indicators of risk. 11. The value of a stock should increase if investors' require,: rate of return declines. 12. If a firm has only $1,000m to invest, it should purchase, the least costly investment. 13. An increase in the debt ratio may be associated with a: increase in risk. 14. A portfolio consisting of assets that are highly correlate is well diversified. 15. The interest factors in the present value of a dollar tab' are the reciprocal of the interest factors in the future value of a dollar table

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Control Theory And Finance

Authors: Andrey Sarychev, Albert Shiryaev, Manuel Guerra, Maria Do Rosário Grossinho

2008th Edition

3540695311, 978-3540695318

More Books

Students also viewed these Finance questions

Question

Develop clear policy statements.

Answered: 1 week ago

Question

Draft a business plan.

Answered: 1 week ago

Question

Describe the guidelines for appropriate use of the direct plan.

Answered: 1 week ago