Considered to be the most risky

Assignment Help Financial Management
Reference no: EM13953893

Which of the following is considered to be the most risky?

A. U.S. government bonds

B. mortgage bonds

C. corporate bonds

D. common stocks

Reference no: EM13953893

Questions Cloud

Considering the purchase of a new production machine : Part 1 Garcia's Truckin Inc. is considering the purchase of a new production machine for $200,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $50,000 per year. To operate the machine properly, wor..
A project requires an initial investment : A project requires an initial investment of $200,000 and expects to produce a cash flow before taxes of 120,000 per year for two years (i.e., cash flows will occur at t = 1 and t = 2). The corporate tax rate is 30%. The assets will depreciate using t..
When a projects net present value exceeds zero : When a project’s net present value exceeds zero, then:
Person requires greater return when risk increases : If a person requires greater return when risk increases, that person is said to be:
Considered to be the most risky : Which of the following is considered to be the most risky?
A decrease in the debt ratio will normally have no effect : A decrease in the debt ratio will normally have no effect on:
Health care reimbursement : The first part of the course project is an analysis of current health care reimbursement policies and their effect on financial management decisions. Your paper should be mainly an evaluation of health care reimbursement and payment methods for a spe..
Using the option pricing theory-find the market value : Albany Corp has zero coupon bonds maturing after 15 years. The overall value of the firm is 3 times the face value of the bonds. The company has sigma of .25 and the riskless rate is 8%. Using the option pricing theory, find the market value of a $10..
Explain current liabilities : Explain current liabilities A current liability is an obligation that is due within one year of the date of a company balance sheet and will require the use of a current asset of will create another current liability. If a company operating cycle is ..

Reviews

Write a Review

Financial Management Questions & Answers

  Cash outflow associated with the acquisition

Given the following information, what is the required cash outflow associated with the acquisition of a new machine; that is, in a project analysis, what is the cash outflow at t = 0?

  Market conditions change-rate of return on uti stock

As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries stock as market conditions change. Suppose rRF=5% rM =12% and bUTI = 1.4. Under the current conditions what is rUTI, the required rate..

  Upfront total after-tax cash cost for this proposed project

Reality Automotive Corp. (“RAC”) manufactures after-market parts for automobiles and trucks (seat belts, windshield wiper blades, floor mats, and truckbed mats). The company is evaluating the expansion of its manufacturing plant to enable it to take ..

  Bonds assuming a market rate on similar risk bonds

Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid annually. Value these bonds assuming a market rate on similar risk bonds is 7% and interest is paid semi-annually.

  Requires an initial investment in spare parts inventory

Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $470,000 is estimated to result in $190,000 in annual pretax cost savings. The press also requires an initial investment ..

  What type of investors would invest in a high beta stock

Discuss beta and its importance. What type of investors would invest in a high beta stock and a low beta stock? Also, in your textbook, review the Real World case, focusing on "Beta, Beta, Who's Got the Beta?," on page 343. Is beta a useful tool? Why..

  Position that complies with federal law

Prepare an advertisement for that position that complies with federal law. This advertisement must be detailed. The minimum length of your job description must be 300 words (approximately three-fourths of a page).

  What are the net cash flows of the project for the years

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,190,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. What are the net cash flows of th..

  Current value-calculate the yield-to-maturity

What is the current value of a $1,000 par value perpetual bond to an investor who requires a 10 percent annual rate of return? The perpetual bond pays inter- est at the rate of 8 percent per year. Cellular International zero coupon bonds (par value $..

  The risk-free rate of return-beta coefficient

The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.50 and g = 4%, at what price should a share..

  What is the pretax cost of debt-aftertax cost of debt

Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? Wh..

  The yeild to maturirty on the bond with the cusip

The Yeild to maturirty on the bond with the cusip 855244AD1 is less than the coupon on the bond. A firm has a cost of equity of 13 percent, a cost of preferred of 11 percent, and an aftertax cost of debt of 6 percent. Givin this, which one of the fol..

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