Question
Which of the following are included in the typical bond indenture? The basic terms of the bond Details of the protective covenants Details of the
Which of the following are included in the typical bond indenture?
| The basic terms of the bond | ||
| Details of the protective covenants | ||
| Details of the protective covenants and sinking fund arrangements | ||
| The basic terms of the bond, details of the protective covenants, sinking fund arrangements, and call provisions |
In general, which of the following statements is true?
| Bonds issued in the United States pay interest annually, while bonds issued in other countries pay interest semiannually. | ||
| Bonds issued in the United States and other countries pay interest semiannually. | ||
| Bonds issued in the United States and other countries pay interest annually. | ||
| Bonds issued in the United States pay interest semiannually, while bonds issued in other countries pay interest annually. |
If the interest rate on debt is rD, what discount rate should the company use when valuing financial leases? The marginal tax rate is Tc.
| rD(1 - Tc) | ||
| rDTc | ||
| rD | ||
| 1 - rDTc |
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Principles Of Managerial Finance
Authors: Lawrence J Gitman, Chad J Zutter
7th Edition
0133546403, 9780133546408
