Question 661

For a bond to earn the yield to maturity, yield to first call, or yield to first par call the bond is assumed to be
  • Question 662

    A sample is:
  • Question 663

    For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?
  • Question 664

    Which of the following statements is (are) true with respect to the impact the choice between expensing and capitalizing will have on certain financial ratios?
    I). Profit margins will be higher throughout the period for firms that capitalize certain expenditures as opposed to expensing them.
    II). Reported income tends to be more stabilized throughout the period if the capitalization method is used.
    III). Asset turnover ratios will be lower for firms that capitalize certain expenditures as opposed to expensing them.
    IV). Debt-to-equity ratios will be lower for companies that expense costs as opposed to capitalizing them.
  • Question 665

    Janice is going to choose 1 of 2 investments. Both investments cost $80,000, but investment A pays
    $ 35,000 a year for four years and investment B pays $30,000 a year for five years. If her required return is
    1 3% and each payment is made at the end of every year, which should Janice choose?