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 98 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
Wow, this really help

ecabral0

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Chemical bonds Chemical bonds
Nursing care plan - risk for infection Nursing care plan - risk for infection
4.1 Age changes in total IQ based on cross-sectional data (lower line) and longitudinal data ... 4.1 Age changes in total IQ based on cross-sectional data (lower line) and longitudinal data ...
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Cost Accounting 14 Cost Accounting 14
Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ... Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ...
Video: B cells and antibodies

For a complete list of videos, visit our video library