Managerial Finance Week 2

If a bond is selling above par, then the coupon rate must be higher than the markets for new bonds.

 

Question 1 options:

                True

                False

 

If you purchased a bond that was callable and it was called, you would have the option to keep it until maturity.

 

Question 2 options:

                True

                False

 

The value of a share of common stock is a function of the dividends expected and the possible price appreciation.

 

Question 3 options:

                True

                False

 

One of the most important reasons for stockholders to have the preemptive right is to protect them against dilution.

 

Question 4 options:

                True

                False

 

Preferred stock is a mixture of debt and equity.

 

Question 5 options:

                True

                False