Homework Answers
6. Option (a) is correct
A calpital market helps businesses raise funds with a maturity date longer than one year. Capital market is not for taking the short term profits or gains or mark to market instruments, rather securities are purchased and sold in capital markets for long term gains.
7. Option (b) is correct
A firm that uses real estate or some other tangible asset, to secure borrowed money has a Mortgage bond. In a mortgage bond, a security is mortgaged in lieu of bond issued.
8. Option (b) is correct
The inflation premium is the premium expected to compensate for the price change expected due to indlation.
9. Because it is unsecured, Junk bonds are risky and have higher return rates than secured bonds.
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Dusness Finance.5 credit MICSL Rdles 6. A capital market helps businesses (1 point) raise funds with...
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MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text?...
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Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...
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1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on...
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CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
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Name Date Principles of Finance Chapters 1 & 2 Week 6 11. Which of the following statements is correct? a. A warrant is basically a long-term option that enables the holder to sell common stock back to the firm at an agreed upon price, at a specified time in the future. b. Generally, warrants are distributed along with preferred stock in order to make the preferred stock less risky. c. If a company issuing coupon paying debt wanted to reduce...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs...
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