The valuation processes for stocks and bonds are about equally accurate. Evaluate this statement.
The valuation of stock is done using the discounting of cash flow approach using cost of capital. The future value of cash flows are projected using various model. Cost of capital is computed using CAPM. The valuation is fairly accurate if all the variables are calculated accurately.
The value of bond is equal to the present value of the cash flow from coupon payments and principal repayment using suitable discount rates.
The valuation of both the stock and bond are based on the present value of the cash flows and which are fairly accurate.
The valuation processes for stocks and bonds are about equally accurate. Evaluate this statement.
Why are government bonds considered more liquid than corporate stocks? Select one: a. Bonds are easier to purchase than corporate stocks b. The bonds market is larger (is worth more money) than the stock market c. Bonds can be sold more quickly than stocks d. Bonds do not fluctuate in price as much as stocks e. Bonds and stocks are actually equally liquid
Which statement about bond prices is most accurate? Select one: a. For a premium bond the yield to maturity is less than the coupon rate b. With an interest rate increase the price rises more for long-term bonds than short-term bonds c. With an interest rate decline the price rises more for short-term bonds than long-term bonds d. For a discount bond the coupon rate is more than the yield-to-maturity e. The answers included are not correct
Use the following table: SeriesAverage returnLarge stocks11.78%Small stocks16.48Long-term corporate bonds6.24Long-term government bonds6.10U.S. Treasury bills3.84Inflation3.10a. Determine the return on a portfolio that was equally invested in large-company stocks and long-term corporate bonds. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the return on a portfolio that was equally invested in small stocks and Treasury bills? (Do not round intermediate calculations and enter your answer as a percent rounded to...
Which of the following is the most accurate statement about the FDA's expedited review of drugs? Group of answer choices Inclusion in the breakthrough drug category implies only that the drug has the potential to treat a serious condition. Approval of drugs under expedited review procedures imply the need for continued collection of safety and efficacy data post approval. There is only one category of expedited review of drugs. Expedited review of drugs does not allow the use of surrogate...
Which statement is correct about common stocks and preferred stocks? A. Preferred stockholders have the right to vote on all company issues. B. Common stocks and preferred stocks are essentially the same. C. A fixed amount of dividend interest is paid to common stockholders periodically. D. Common stockholders have the right to purchase newly issued stocks before preferred stockholders.
Evaluate the validity of the following statement: Spontaneous processes are ones that occur quickly and have a low activation energy. A) False. Spontaneous processes always require an input of energy to overcome the activation energy, but always react quickly. B) False. Spontaneous processes can occur slowly, but always have a low activation energy. C) False. Spontaneous reactions can react slowly and can have a high activation energy. D) False. Spontaneous processes always react slowly and always have a high activation...
Which statement is accurate? A. only nonpolar covalent bonds contain potential energy B. covalent bonds form between charged ions C. most of the enzymes in cells are made of RNA D. organic molecules contain carbon and hydrogen E. prokaryotic chromosomes are made of RNA
Normally, the financial statement assentation about the valuation of cash is of minimum concern during the audit of cash. However, the auditor's concern about the valuation assertion will most likely increase when A) The proof of cash cannot be reconciled B) Both currency and negotiable securities are on hand C) The client has foreign currency accounts D) The client uses a demand deposit account
Discuss the structure of financial statements and how they interact with each other. Why is a cash flow statement considered an accurate indicator to evaluate a company? Locate financial statements for a company of your choice, and review the cash flow statement. What insights does it provides about the company’s performance, in relation to other its other financial statements?
which is the most accurate statement about viscosity and
magma
QUESTION 2 Which is the most accurate statement about viscosity and magma? O High viscosity magmas flow at higher speeds than low viscosity magmas. O Rhyolitic (felsic) magmas have relatively high viscosity and lead to explosive eruptions O The viscosity of magma is controlled by the amount of gas dissolved in the magma. Basaltic (mafic) magmas are hotter and have higher viscosity than felsic magmas.