O the bond will be valued at a discount below par value. Question 22 1 pts All of the following are criticisms of the payback period EXCEPT: O it does not consider time value of money O it does not consider risk O it ignores cash flow occurring after the payback period O it does not consider a required rate of return O it uses accounting profits instead of cash flows D Question 23 1 pts Suppose a firm pays out 15% of its earnings per share in common stock dividends. This is an example of: Oa constant dividend pavout ratio

O the bond will be valued at a discount below par value. Question 22 1 pts All of the following are criticisms of the payback period EXCEPT: O it does not consider time value of money O it does not consider risk O it ignores cash flow occurring after the payback period O it does not consider a required rate of return O it uses accounting profits instead of cash flows D Question 23 1 pts Suppose a firm pays out 15% of its earnings per share in common stock dividends. This is an example of: Oa constant dividend pavout ratio

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter10: The Cost Of Capital

Section: Chapter Questions

Problem 3DQ: Next, we need to calculate MMMs cost of debt. We can use different approaches to estimate it One...

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la bonitob at bloky enig (7.8) The interest rate investors expect on a new bond issue can be determined by computing the for the company's Alternatively, it is possible on newly to determine the cost of new debt financing by finding the issued bond with similar (7.9) The firm's overall measure of the cost of capital is the cost of debt is the The dollar cost of equity is overall firm average cost of capital is the cost of equity plus the cost of debt, divided by The dollar (7.10) Interest (is / is not) a tax-deductible expense, and dividends paid to stockholders (are / are not). The payment of interest reduces the firm's taxes by after-tax cost of debt in dollars equals The after-tax cost of debt in percentage terms is WACC = dito The The
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1. When the effective cost of debt is greater its the nominal cost,a. the initial net measurement of the bond is more than the face value.b. The net proceeds is more than the face value.c. The entity records a discount on the bond payable.d. The interest expense is less than the interest payments.2. Which of these statement are true? [S1] The dividend decision generally involves the same factors as the earnings retention decision. [S2] Under the Dividend Relevance Theory, dividends are valued more than capital gains.3. The cost of retained earnings is less than the cost of ordinary shares because ofa. the issuance cost.b. the trust fund doctrine.c. agency costs of free cash flow.d. the taxation on earnings.4. GHI Corp., a new and relatively unknown entity, has issued 5-year bonds with an interest rate of 30%. These may also be traded in by the holder for 5 ordinary shares for every P1,000 face value of the bond. GHI added this feature so that once it has better profits, it can entice…
Which statement is false? O A. As the term of a bond approaches zero, the price approaches kar. O B. For corporate and government bonds, the coupon payments amortize the princi OC. Overall, bond prices are less volatile than stock prices. O D. The coupon on a bond is expressed as a percentage of face value. O E. Corporate bonds can be bought and sold in the secondary market. Reset Selection
أساسيات الإدارة المالية نظري There are no cash flow effects for the isuer of a zero coupon bond except for the intal cash inflow when the bonds are issued and the cash payment when the bonds mature. Select one: O True False Previous page Next page Retum to: General a n
Cc. 168.
FINANCE1A First Question
A part) The principle repaid at the end of the loan is considered to be A) par value B) face value C) both d) none B part) While the cashflows generated from common stock looks like a perpetual bond, it is not a form of equity True or false
FINANCE1A 3rd Question
The creditors expect to be paid interest in exchange for lending their money. This periodical payment to the bonds is called as ___________________. Select one: A. Reserves B. Dividend C. None of the given option D. Coupon
Explain thoroughly why it is the answer.