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Author Question: In 2000 Jenson Inc issued bonds with an 8 percent coupon rate and a 1,000 face value. The bonds ... (Read 91 times)

lindiwe

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on: Jul 10, 2018
In 2000 Jenson Inc issued bonds with an 8 percent coupon rate and a 1,000 face value. The bonds
  mature on March 1, 2025.
 
  If an investor purchased one of these bonds on March 1, 2012, determine
  the yield to maturity if the investor paid 1,100 for the bond.
  A) The yield to maturity must be greater than 8 because the price paid for the bond exceeds the
  face value.
  B) 7
  C) The yield to maturity is 900 (1,000 interest less 100 capital loss).
  D) 5.4

Question 2

Using the dividend valuation method, an analyst determines the value of Company A's stock to be
  10 and the value of Company B's stock to be 14. Based on this information, which of the following
  statements is most accurate?
 
  A) Company B's required rate of return is higher than Company A's required return.
  B) Other things being equal, if Company A and Company B have the same firm value, Company
  A may have more shares of stock outstanding than Company B.
  C) Company B must be riskier than Company A, and risk requires a reward.
  D) Other things being equal, if Company A and Company B have the same firm value, Company
  B must have more debt, thus leveraging its returns for the benefit of shareholders.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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joneynes

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lindiwe

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

bassamabas

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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