Entrepreneurial Finance
6th Edition
ISBN: 9781337635653
Author: Leach
Publisher: Cengage
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Which of the following statements is true about a bond's yield to maturity (YTM)?A) YTM is the interest rate that makes the present value of bond payments equal to its current market priceB) YTM is only calculated at the time of purchaseC) YTM does not account for the bond’s coupon paymentsD) YTM is the same as the bond’s coupon rate if purchased at face value
Which of the following would likely decrease the cost of debt for a company?A) An increase in the company's credit ratingB) A decrease in the company's profitabilityC) A rise in interest rates across the marketD) An increase in the company's dividend payouts
Which of the following is considered a long-term financing source for a company?A) Accounts PayableB) Common StockC) Short-term loansD) Accrued Expenses
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