Question

A debt is said to be selling at par, when the _____ of the debt is equal to the _____.​

Select one:

a. ​face value; premium payment on the exercise of a call provision

b. ​market value; face value of the debt

c. ​principal value; discount on the issue of a zero coupon bond

d. ​maturity value; par value of the debt

e. ​par value; discounted value of the interest payments

A sinking fund call:​

Select one:

a. ​does not require the company to pay a small percentage of the issue every year.

b. ​requires the company to pay a penalty to investors.

c. ​does not require the company to pay a call premium.

d. ​requires the company to redeem bonds at market price.

e. ​requires the company to claim back all the interest payments from the bondholders.

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend on this stock?​

Select one:

a. ​$2.81

b. ​$4.29

c. ​$6.13

d. ​$4.75

e. ​$3.00

A shareholder can transfer the right to vote to a second party, by means of an instrument known as _____.​

Select one:

a. ​allotment

b. ​rationing

c. ​consortium

d. ​arbitrage

e. ​proxy

Answer 1