Bonds to fuel their expansion overseas

Assignment Help Financial Management
Reference no: EM131189123

Loan Money To Us, Inc. has issued $10,000,000 of bonds to fuel their expansion overseas. Their bonds were given an "A" rating by both Standard & Poor & Moody's. Which of the following answers are true about their bonds? You may select as many or as few answers as you would like.

a) These bonds are "investment grade"

b) Their coupon payments are normally less than more risky bonds.

c) Their high rating means investors think Loan Money To Us have better growth prospects than their competitors.

d) Their bonds are supposed to have less default risk than bonds rated as "speculative".

e) These bonds are more risky than a bond with a "Aaa" or "AAA" rating.

Reference no: EM131189123

Questions Cloud

Correlation between age and physical flexibility : If the correlation between age and physical flexibility is -.68, what does this mean? How would this correlation look on a scatter diagram?
Demonstrate innovation to solve business problems : Apply knowledge related to fundamental business processes to make effective decisions in the global context - integrate business knowledge to take well-reasoned action in diverse situations.
Needed amount to purchase the boat : Carrie would like to buy a boat that costs $14,300. She currently has $12,500 saved up and intends on investing this amount in an account that earns 8.5% simple interest. How long will it take for her account to reach the needed amount to purchase..
What is the function of the signal sequence located : What is the function of the signal sequence located at the amino terminus of a protein? Which of the following is not a small intracellular signaling molecule (second messenger)?
Bonds to fuel their expansion overseas : Loan Money To Us, Inc. has issued $10,000,000 of bonds to fuel their expansion overseas. Their bonds were given an "A" rating by both Standard & Poor & Moody's. Which of the following answers are true about their bonds? You may select as many or as f..
Paper regarding development of an effective approach : Using the required readings and any other resources you might find helpful, write a paper regarding development of an effective approach to integration of cryptography for your project organization. Be sure to cover the following topics:
How are the 10 decisions of om different : How are the 10 decisions of OM different when applied to the operations manager of a service operation such as Hard Rock versus an automobile company such as Ford Motor Company?
What protein structure results from folding chain caused : What protein structure results from folding or coiling of a polypeptide chain caused by hydrogen bonds between amino acids? In the process of diffusion, net movement of substances is always from a region.
Earnings after taxes and available for common stockholders : Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period. Assuming an ordinary tax rate of %35, compute the firm's earnings after taxes and earnings available for common sto..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Decided to sell of current furniture just prior to moving

You are planning to move next year. You recently told your best friend that you have decided to sell all of your current furniture just prior to moving as you do not want to pay to transport it across the country. Your friend offered to pay you $2,00..

  Which companies has highest degree of translation exposure

Assume the euro's spot rate is presently equal to $1.00.- Which of the five companies described here has the highest degree of translation exposure?

  Utilized special purpose entities

Enron utilized Special Purpose Entities (SPE) in the Cayman Islands to significantly improve its sales and income. AIG and others have used offshore insurance contracts to “smooth out” their earnings. Is it unethical if these corporations enter into ..

  What will be the addition to retained earnings

A firm has projected sales of $328,000, costs of goods sold equal to 68% of sales, interest of $18,500, a tax rate of 35%, and a dividend payout ratio of 60%. What will be the addition to retained earnings?

  What is its weighted average cost of capital

A company has 100 million shares outstanding trading for $8 per share. It also has $900 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 12%, and its effective corporate tax rate is 40%, what is its w..

  The value of the transaction less brokerage fees

If Sally sells her shares from company A at the same time that Tom buys the same amount of shares from company A what does the organization receive? the value of the transaction less brokerage fees

  What stock price at maturity will you break even

Suppose that put options on a stock with strike prices $45 and $55 cost $4 and $9, respectively. Use these options to create a bear spread. At what stock price at maturity will you break even? In other words, at what stock price, will you make $0 pro..

  Dividend-discount model-value of share of L Oreal stock

L'Oreal will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. According to the dividend-discount model, what is..

  Treasury note with two years to maturity

Assume that $1000.00 par value, semiannual coupon U.S. Treasury note with two years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 8.80%. Using this information and ignoring the other costs involved, calculate the val..

  What is discounting as it relates to time value of money

What is discounting as it relates to time value of money? What is the formula for discounting? Provide some specific healthcare-related examples in which you would utilize this formula. Your response should be at least 200 words in length.

  Method of evaluating the firms performance

The method of evaluating the firm’s performance over time is known as:

  Working capital in half by using inventory control system

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $5.4 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years fo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd