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

Author Question: When assessing the fixed-payment coverage ratio, ________. A) the lower its value the more risky ... (Read 13 times)

silviawilliams41

  • Hero Member
  • *****
  • Posts: 560
on: Jul 11, 2018
When assessing the fixed-payment coverage ratio, ________.
 
  A) the lower its value the more risky is the firm
  B) the lower its value, the higher is the firm's financial leverage
  C) preferred stock dividend payments can be disregarded
  D) the higher its value, lesser is its reliability to pay up the debts

Question 2

The cost of retained earnings is always lower than the cost of a new issue of common stock due to the absence of flotation costs when financing projects with retained earnings.
 
  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

ntsoane kedibone

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jul 11, 2018
Answer to Question 1

A

Answer to Question 2

TRUE


silviawilliams41

  • Member
  • Posts: 560
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

dawsa925

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Assessing Tracheal Position Assessing Tracheal Position
Client position when assessing jugular vein distention. Client position when assessing jugular vein distention.
Bones of the lower extremity. Bones of the lower extremity.
Although Neandertal brain sizes fall well within the modern human range, their EQ is lower than mode Although Neandertal brain sizes fall well within the modern human range, their EQ is lower than mode
The risk of dying before the age of 65 gets lower as family income gets higher. The risk of dying before the age of 65 gets lower as family income gets higher.
How to choose the right payment plan with changing conditions (Question 2) How to choose the right payment plan with changing conditions (Question 2)
Video: Types of antimicrobial substances (interferons & complement protein)

For a complete list of videos, visit our video library