Author Question: ________ are secured by stock and/or bonds that are owned by the issuer. A) Mortgage bonds B) ... (Read 198 times)

SAVANNAHHOOPER23 · **on:** Jul 11, 2018

________ are secured by stock and/or bonds that are owned by the issuer.

A) Mortgage bonds
B) Equipment trust certificates
C) Collateral trust bonds
D) Subordinated debentures

Question 2

In calculating the cost of common stock equity, ________.

A) the use of the capital asset pricing model (CAPM) is often preferred, because the data required are more readily available
B) the use of the CAPM is preferred, because it directly considers risk and the effect of inflation on the stock prices
C) the use of the constant-growth valuation model is often preferred, because the data required are more readily available
D) the use of the constant-growth valuation model is often preferred, because it has a stronger theoretical foundation