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

Author Question: If the expected return were above the required return, investors would buy an asset, driving its ... (Read 122 times)

mydiamond

  • Hero Member
  • *****
  • Posts: 804
on: Jul 10, 2018
If the expected return were above the required return, investors would buy an asset, driving its price up and its expected return down.
 
  Indicate whether the statement is true or false

Question 2

Inkle, Inc has 200,000 of 10 bonds outstanding (which pay 20,000 interest) and 100,000 of 12 preferred stock (which pay 12,000 dividends). Assume that Inkle's earnings in the upcoming year will be either 50,000 or 100,000.
 
  Given these two possibilities, common stockholders' share of earnings will be either ________ or ________.
  A)
 
  38,000; 88,000
  B)
 
  30,000; 68,000
  C)
 
  18,000; 68,000
  D)
 
  18,000; 88,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bobsmith

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


mydiamond

  • Hero Member
  • *****
  • Posts: 804
Reply #2 on: Jul 10, 2018
Correct answers!


bobsmith

  • Sr. Member
  • ****
  • Posts: 316
Reply #3 on: Jul 10, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Becoming a Certified Medical Assistant may demonstrate your commitment to the profession and the con Becoming a Certified Medical Assistant may demonstrate your commitment to the profession and the con
Expected Benefits for ICD-10-CM Expected Benefits for ICD-10-CM
Venous return to the heart and blood flow to the lungs. Venous return to the heart and blood flow to the lungs.
Do Phone Use and Driving Mix? Do Phone Use and Driving Mix?
How much energy is required to form 141.8 g of Cl2, according to the reaction below? The molar ... How much energy is required to form 141.8 g of Cl2, according to the reaction below? The molar ...
The expected value for a binomial probability distribution is _____. The expected value for a binomial probability distribution is _____.
Video: Factors that influence muscle tension - Sarcomere length and force, understretched and overstretched

For a complete list of videos, visit our video library