This topic contains a solution. Click here to go to the answer

Author Question: The liquidity preference theory suggests that for any given issuer, long-term interest rates tend to ... (Read 87 times)

luminitza

  • Hero Member
  • *****
  • Posts: 555
The liquidity preference theory suggests that for any given issuer, long-term interest rates tend to be higher than short-term rates due to the lower liquidity and higher responsiveness to general interest rate movements of longer-term securities;
 
  this causes the yield curve to be upward-sloping.
  Indicate whether the statement is true or false

Question 2

Candy Corporation had pretax profits of 1.2 million, an average tax rate of 34 percent, and it paid preferred stock dividends of 50,000. There were 100,000 shares outstanding and no interest expense.
 
  What was Candy Corporation's earnings per share?
  A) 3.91
  B) 4.52
  C) 7.42
  D) 7.59



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Ashley I

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

TRUE

Answer to Question 2

C




luminitza

  • Member
  • Posts: 555
Reply 2 on: Jul 11, 2018
:D TYSM


cassie_ragen

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

For a complete list of videos, visit our video library