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 111 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?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

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?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Despite the traditional focus on males, females actively choose mates and are the driving force in t Despite the traditional focus on males, females actively choose mates and are the driving force in t
For centuries, widows in the Mediterranean countries, such as thise widow in Greece, were expected ... For centuries, widows in the Mediterranean countries, such as thise widow in Greece, were expected ...
Return to the icehouse Return to the icehouse
The expected results of two generations of semiconservative replication The expected results of two generations of semiconservative replication
The expected value for a binomial probability distribution is _____. The expected value for a binomial probability distribution is _____.
calculate the quantities required to make 5 lb of hydrophilic ointment: calculate the quantities required to make 5 lb of hydrophilic ointment:
Video: Methods of carbon dioxide transport - carbaminohemoglobin and bicarbonate ions

For a complete list of videos, visit our video library