Question 646
Which of the following is the best example of frictional unemployment?
Question 647
If a nation is running a surplus in its current account,
Question 648
A firm intends to take on a significant amount of new debt in order to fund the purchase of a close competitor. However the firm cannot complete the transaction unless it first calls one of its outstanding bond issues. It must be true that the called bonds
Question 649
BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds
*
outstanding.
6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of
*
common stock, Issue price $100
8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common
*
shares, Issue price $80
9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1 share
*
of common.
Average market price of common is $52.00 per share.
*
Common shares outstanding at the beginning of the year were 40,045.
*
Net Income for the period was $200,000, while the tax rate was 40%.
*
What were the Basic EPS for the year?
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds
*
outstanding.
6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of
*
common stock, Issue price $100
8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common
*
shares, Issue price $80
9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1 share
*
of common.
Average market price of common is $52.00 per share.
*
Common shares outstanding at the beginning of the year were 40,045.
*
Net Income for the period was $200,000, while the tax rate was 40%.
*
What were the Basic EPS for the year?
Question 650
Which of the following statements about duration characteristics are true?
I). The duration of a coupon bond will always be less than its term to maturity.
II). There is generally an inverse relationship between term to maturity and duration.
III). There is a positive relationship between coupon and duration.
IV). There is an inverse relationship between yield to maturity and duration.
I). The duration of a coupon bond will always be less than its term to maturity.
II). There is generally an inverse relationship between term to maturity and duration.
III). There is a positive relationship between coupon and duration.
IV). There is an inverse relationship between yield to maturity and duration.