QUESTIONS AND CORRECT VERIFIED
ANSWERS/ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS(ALL WHAT YOU
NEED) LATEST EDITION 2024
Coupon Rate - (answers)The interest rate that a company promises to pay on bonds
Market Rate - (answers)The interest rate on other comparable bonds
Par Value - (answers)The amount payable on maturity of the bond
Market rate - (answers)Same as YTM - Yield to Maturity
Gordon Growth Model - (answers)Assumes stable growth rates and does not incorporate risk
CAPM Model - (answers)Allows to determine expected return on stocks and incorporates risk
How do public companies maximize shareholder value? - (answers)By maximizing Earnings Per
Share
How do private companies maximize shareholder value? - (answers)By keeping control within
the company
Positive credit rating has what effect on capital? - (answers)Lowers cost of capital
, What is cash flow from operating activities? - (answers)It is cash flow generated for sale of
products and services
What is the formula for retained earnings? - (answers)Ending retained earnings=Beginning
retained earnings + Net Income = Dividends
Is depreciation and salvage value on an asset precise or is it an estimate? - (answers)It is an
estimate
What is an example of accounting difference - (answers)Companies using different accounting
methods
What is an example of a timing difference? - (answers)Companies using different fiscal years
Do stock holders or bond holders have voting rights? - (answers)Stock holders have voting
rights
What factors are considered for the initial outlay of a new investment? - (answers)Purchase
price of new equipment, shipping costs, and investment in working capital
What is the risk associated with debt financing? - (answers)Too much debt can lead to
bankruptcy
What are inventory related costs? - (answers)Product costs, storage costs, and opportunity costs
What statements are required to be filed with the SEC - (answers)Annual audited financial
statements