Need these ASAP please :(
Which of the following statements is CORRECT?
a.
In the case of insolvency, the claims of debt are honored prior to those of common stock and after those of preferred stock.
b.
In general, interest on bonds, may be deferred until a later date at the discretion of management, making debt financing more appealing to corporate managers.
c.
A bond with a yield-to-maturity of 6% will also have a coupon rate of 6%.
d.
If a bond has a market value that is LOWER than its face value, then it is a DISCOUNT bond.
Which of the following statements is CORRECT?
a.
Common stock valuation can be based on the present value of future dividends or alternatively on the present value of the company future net income.
b.
Public perception and reputation do not affect stock prices, which are strictly a function of dividends and required returns.
c.
Preferred stock is less risky than common stock, but more risky than debt.
d.
Preferred stock and common stock issued by the same firm will have the same required return because the riskiness of the company cash flows is the same for both securities.
Which of the following statements is CORRECT?
a.
Bond prices are DIRECTLY related to market interest rates.
b.
If a bond has a market value that is HIGHER than its face value, then it is a PREMIUM bond.
c.
The value of a bond is equal to the present value of the bond coupon interest payments plus the present value of the bond face value, all discounted at the bond coupon rate.
d.
A bond with a coupon rate of 8% will also have a yield-to-maturity of 8%.
