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 105 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
:D TYSM

chjcharjto14

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Alterable and unalterable risk factors for hypertension. Alterable and unalterable risk factors for hypertension.
Facing the table, place one hand on the thigh and the other on the lower leg. Gently rock the leg ... Facing the table, place one hand on the thigh and the other on the lower leg. Gently rock the leg ...
Infant formula is available in several forms and varies in cost and ingredients Infant formula is available in several forms and varies in cost and ingredients
Anterior & Posterior View of Lower Limb (Extremity) Anterior & Posterior View of Lower Limb (Extremity)
Barry Bonds hits a 125m (450') home run that lands in the stands at an altitude 30m above its ... Barry Bonds hits a 125m (450') home run that lands in the stands at an altitude 30m above its ...
The Lower Extremities The Lower Extremities
Video: Introduction to Herpes

For a complete list of videos, visit our video library