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 85 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?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

The Common Pochard - female The Common Pochard - female
Common skin signs are often evidence of an illness or disorder. A crust is a dry, serous or ... Common skin signs are often evidence of an illness or disorder. A crust is a dry, serous or ...
Prescriptions for common analgesics used in dentistry. Prescriptions for common analgesics used in dentistry.
Water shortages, reduced agricultural capacity & coastal inundation are common themes Water shortages, reduced agricultural capacity & coastal inundation are common themes
Stress and the Common Cold Stress and the Common Cold
Video: Effect of the environment on coat color in the Himalayan rabbit Animation

For a complete list of videos, visit our video library