« previous next »

Author Question: Stocks differ from bonds because: A) bond cash flows are known while stock cash flows are ... (Read 86 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
on: Jul 10, 2018
Stocks differ from bonds because:
 
  A) bond cash flows are known while stock cash flows are uncertain.
  B) firms pay bond cash flows prior to paying taxes while stock cash flows are after tax.
  C) the ending par value of a bond is known at purchase while the ending value of a share of stock is unknown at purchase.
  D) All of the above

Question 2

Bonds are different from stocks because ________.
 
  A) bonds promise fixed payments for the length of their maturity
  B) bonds give payments only after other owners are paid
  C) bonds do not have maturity dates
  D) bonds promise growth in earnings


cat123

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D

Answer to Question 2

Answer: A
Explanation: A) Bonds give payments before equity owners are paid. Bonds mature while stock have no maturity date. Bond payments are fixed by the coupon payment and do not promise growth in payments.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Electrons Are Shared in Covalent Bonds Electrons Are Shared in Covalent Bonds
Common hydrogen bonds in biological systems Common hydrogen bonds in biological systems
Directionality of the hydrogen bond Directionality of the hydrogen bond
This chart shows the various lines of responsibility and how they differ in presidential and parliam This chart shows the various lines of responsibility and how they differ in presidential and parliam
Schematic of an IgG molecule: Two heavy and 2 light chains are linked together by disulfide bonds. ... Schematic of an IgG molecule: Two heavy and 2 light chains are linked together by disulfide bonds. ...
How many double bonds they contain How many double bonds they contain
Video: Heart sounds

For a complete list of videos, visit our video library