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a.) pay a fixed rate of interest c.) give the investor the option to convert the bond into a specified number of shares of common stock
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Payment of interest is required only when the earnings are available – in case of: começar a aprender
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começar a aprender
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b.) are high-yield securities
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Payment of dividends is at the discretion of começar a aprender
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b.) the board of Directors
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Securities are first issued through the ___primary__ market and then trade on the __secondary___ market começar a aprender
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Securities are first issued through the ___primary__ market and then trade on the __secondary___ market
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Capital market instruments are: começar a aprender
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When the interest rate goes up: começar a aprender
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the bond price always go down
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When calculating the Initial Investment in capital budgeting we should include: começar a aprender
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a.) change in net working capital b.) installation cost of new assets
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Increase in current assets mean: começar a aprender
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We should accept the project if its IRR is: começar a aprender
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greater than the cost of capital
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Certainty Equivalents as a risk adjustment technique of capital budgeting assumes começar a aprender
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) considering only the part of estimated cash inflow (the part which is certain)
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The degree of financial leverage (DFL) measures: começar a aprender
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) the sensitivity of changes in EPS to changes in EBIT
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The times interest earned ratio (interest coverage ratio) is one of: começar a aprender
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The most expensive source of capital is: começar a aprender
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começar a aprender
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a.) is dependent on the level of production (purchases and sales) c.) is unsecured
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A line of credit guaranteed to a borrower by a bank for a stated period of time is: começar a aprender
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Revolving Credit Agreement
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The greater the firm’s net working capital: começar a aprender
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a. the lower the risk c. the lower the profitability
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Cash flow for investment activities include começar a aprender
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a) change in gross fixed assets c.) changes in business interests
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When the amount of financing is growing, the WEighted Marginal Cost of Capital: começar a aprender
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Short term market securities take place começar a aprender
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Security market line shows the realation between expected return on investment and itsb começar a aprender
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identifying CFs corporate finance relevant to capital budget decision we should: começar a aprender
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b. include opportunity cost
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The time factor in the value of money is not taken into account in começar a aprender
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Information about the personnel expenses can be found in: começar a aprender
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