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

Author Question: The cost of common stock equity is ________. A) the cost of the guaranteed stated dividend ... (Read 86 times)

geoffrey

  • Hero Member
  • *****
  • Posts: 880
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

s.meritte

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

C


geoffrey

  • Hero Member
  • *****
  • Posts: 880
Reply #2 on: Jul 11, 2018
Thank you :)


s.meritte

  • Sr. Member
  • ****
  • Posts: 306
Reply #3 on: Jul 11, 2018
Happy to help you


« previous next »
 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial
The 20 common amino acids of proteins The 20 common amino acids of proteins
Common eye and vision problems Common eye and vision problems
Childe Hassam, Boston Common at Twilight Childe Hassam, Boston Common at Twilight
Hysterectomies have become so common that by age 60, one of three U.S. women has had her uterus ... Hysterectomies have become so common that by age 60, one of three U.S. women has had her uterus ...
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Video: ETC Protein Complexes & Chemiosmosis (Total ATP Production and ATP Synthase)

For a complete list of videos, visit our video library