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Author Question: The cost of common stock equity is ________. A) the cost of the guaranteed stated dividend ... (Read 63 times)

geoffrey

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on: Jul 11, 2018
The cost of common stock equity is ________.
 
  A) the cost of the guaranteed stated dividend expected by the stockholders
  B) the rate at which investors discount the expected dividends of the firm to determine its share value
  C) the after-tax cost of the interest obligations
  D) the historical cost of floating the stock issue

Question 2

The riskiness of publicly traded bond issues is rated by independent agencies. According to Moody's rating system, an Aaa bond and a Caa bond are ________ and ________ respectively.
 
  A) speculative; investment grade
  B) prime quality; medium grade
  C) prime quality; speculative
  D) medium grade; lowest grade


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s.meritte

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Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

C


geoffrey

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Reply #2 on: Jul 11, 2018
Thank you :)


s.meritte

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Reply #3 on: Jul 11, 2018
Happy to help you


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