What is the coupon rate, What is The coupon rate and it is

What is the coupon rate

Reference no: EM1310516

True (or) False questions on coupon rate.

1. Which two securities have the highest and second highest priority of claims on the assets of a company, respectively, from the following list?

Preferred stock
Subordinated debenture
Common stock
Senior debenture
Senior secured debt
Junior secured debt.

a. Preferred stock and common stock

b. Junior secured debt and subordinated debenture

c. Senior secured debt and junior secured debt

d. Senior debenture and subordinated debenture

2. The coupon rate is _____.

a. Stated interest rate divided by a par value.

b. Stated interest rate divided by the current price of the bond.

c. The interest rate that will equate future interest payments and payment at maturity to a current market price.

d. The face value of the bond.

3. Current yield is _____.

a. Stated interest rate divided by a par value.

b. Stated interest rate divided by the current price of the bond.

c. The interest rate that will equate future interest payments and payment at maturity to a current market price.

d. The face value of the bond.

4. The yield to maturity is _____.

a. Stated interest rate divided by a par value.

b. Stated interest rate divided by the current price of the bond.

c. The interest rate that will equate future interest payments and payment at maturity to a current market price.

d. The face value of the bond.

5. The asset of an operating lease will show up on the balance sheet.

a. True

b. False

6. A preemptive right provides current stockholders with the first option to buy new shares.

a. True

b. False

7. Common stock holders do not have the last claim on assets and do not have residual claim to income.

a. True

b. False

8. Preferred stock is a "hybrid" security, because ________.

a. the market price fluctuates as interest rates fluctuate.

b. the yield curve can slope upward or downward.

c. it possesses some of the characteristics of debt and common stock.

d. it pays dividends when the company wants.

9. With the cumulative feature, if preferred stock dividends are not paid in any one year, they accumulate and must be paid in total before debt holders can receive interest.

a. True

b. False

10. American Depository Receipts (ADRs) are certificates that have a legal claim on the ownership interest in a domestic company's common stock.

a. True

b. False

Reference no: EM1310516

Questions Cloud

Show the influence on the optimal dividend policy : Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is decreased. Their argument is based on the assumption

Creating different volume such as the striped, mirrored : What should you do in order to create a different volume kind such as the striped, mirrored, or Raid 5 volumes? Why utilize the Windows command line when we live within the GUI world?

Methods of accounting for treasury stock : What are the two methods of accounting for treasury stock? Prepare the journal entry to record the purchase of treasury stock by the cost method.

Financial writer andrew tobias described an incident : The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School

What is the coupon rate : What is The coupon rate and it is true that the asset of an operating lease will show up on the balance sheet

The variable cost for every additional student : The college has annual fixed costs of $10 million, also the variable cost for every additional student is $5,000.

Marketing research objective questions : Marketing research objective questions.

Sdlcs and other sites explaining some of the tools : Visit web sites for the few leading information systems consulting the firms. Try to determine the information regarding the approach they utilize in order to develop systems. Specify whether SDLCs are described there? Also state do their sites ex..

Illusion of invulnerability : The illusion of invulnerability is best stated by the phrase,

User Account

All Pages