Finance

Your firm has issued a 10-year $1,000.00 par value semiannual 10% coup

Your firm has issued a 10-year $1,000.00 par value semiannual 10% coupon bond that sells for $1,000 in the market place. The proceeds from the sale of the bond issue are $975.00 per bond. What is your firm’s yield to maturity on this new bond issue? Use a financial calculator to determine your answer. A) […]

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Date: September 19th, 2020

Empirical evidence indicates that the market equity value of a multipl

Empirical evidence indicates that the market equity value of a multiple-segment firm generally is (i) than the sum of the imputed market values of its individual segments, a phenomenon called the (ii). (i) __(ii)__ a. lower diversification discount. b. lower segment effect. c. higher diversification premium. d. higher segment effect.     ANSWER A

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Date: September 19th, 2020

Which of the following would be classified as equity financing for a f

Which of the following would be classified as equity financing for a firm? A) Preferred shareholders, banks, and nonbank lenders B) Nonbank lenders, common shareholders, and commercial banks C) Preferred shareholders, common shareholders, and retained earnings D) Suppliers, nonbank lenders, and commercial banks     ANSWER Answer: C Explanation: C) Bank and nonbank lenders, as […]

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Date: September 19th, 2020