This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: By raising capital at lower cost, bonds lower risk for shareholders. Indicate whether the ... (Read 29 times)

lidoalex

  • Hero Member
  • *****
  • Posts: 538
on: Jul 1, 2018
By raising capital at lower cost, bonds lower risk for shareholders.
 
  Indicate whether the statement is true or false

Question 2

The current value of a business firm is the present value of all its future profits.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mceravolo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jul 1, 2018
Answer to Question 1

F Bondholders have first claim on earnings, which means that shareholders will bear more risk when bonds are outstanding.

Answer to Question 2

T This is a reasonable way to characterize the value of a firm, though it is not easy to know the future in order to apply it.


lidoalex

  • Member
  • Posts: 538
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

ebonylittles

  • Member
  • Posts: 318
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Gradient Flow:Upper air moving from areas of higher pressure to areas of lower pressure undergo ... Gradient Flow:Upper air moving from areas of higher pressure to areas of lower pressure undergo ...
Suggested Antibiotic Prophylaxis Regimens in Patients at Potential Increased Risk of Hematogenous ... Suggested Antibiotic Prophylaxis Regimens in Patients at Potential Increased Risk of Hematogenous ...
Knead lower leg muscles by bending the knee until the foot is flat on the supporting surface. Reach ... Knead lower leg muscles by bending the knee until the foot is flat on the supporting surface. Reach ...
Pregnant and Lactating Women, Children, the Ill, and Older Adults Are at the Highest Risk Pregnant and Lactating Women, Children, the Ill, and Older Adults Are at the Highest Risk
The relationship between maternal age and the frequency of trisomy 21 (Down syndrome). The risk incr The relationship between maternal age and the frequency of trisomy 21 (Down syndrome). The risk incr
Relative lifetime risk of schizophrenia Relative lifetime risk of schizophrenia
Video: Oxygen transport: association and dissociation & Factors that affect hemoglobin's saturation with O2

For a complete list of videos, visit our video library