Stocks differ from bonds because: the ending par value of a bond is known at purchase...
Stocks differ from bonds because:
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the ending par value of a bond is known at purchase while the ending value of a share of stock is unknown at purchase. |
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firms pay bond cash flows prior to paying taxes while stock cash flows are after tax. |
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bond cash flows are known while stock cash flows are uncertain. |
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of all of the above. |
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Stocks differ from bonds because:
the ending par value of a bond is known at purchase...
Assignment Chapter 12- Investing in Stocks and Bonds Understanding How Bonds Work as Investment Vehicles From...
Assignment Chapter 12- Investing in Stocks and Bonds Understanding How Bonds Work as Investment Vehicles From an investment point of view, bonds are considered to safer than stocks. They are generally of lower risk offering lower but guaranteed returns unlike stocks. As an investor in bonds, you would lend money to the issuer of the bonds also known as fixed income securities. It is important to understand what bonds are and how they are work as investment vehicles. Suppose a...
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Assignment Chapter 12- Investing in Stocks and Bonds Understanding How Bonds Work as Investment Vehicles From an investment point of view, bonds are considered to safer than stocks. They are generally of lower risk offering lower but guaranteed returns unlike stocks. As an investor in bonds, you would lend money to the issuer of the bonds also known as fixed income securities. It is important to understand what bonds are and how they are work as investment vehicles. Suppose a...
FINA Company's assets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks. The amounts are as follows: Bank loans: $ 100 million borrowed at 3% Bonds: $280 million, paying 8% coupon with semi- annual payments, and maturity of 10 years. FINA sold its $1,000 par-value bonds for $970 and had to incur $20 flotation cost per bond. Preferred Stocks: $120 million, paying $15 dividends per share. FINA sold its preferred shares for $220 and had to...
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