Calculating bond prices - Study guides, Class notes & Summaries

Financial Management Final Exam All Answers Correct risk premium between stocks and bonds with in company is fairly predictable 4-7% not under control factors of WACC interest rates in the economy general level of stock prices tax rates factors we can control of WACC weights we determine, how much debt vs equity we want to use returns on bond loans, stock risk: high risk projects higher required rate , B goes up thenRd goes up Re goes up WACC goes up why must firms adjust their c...

An individual has annuitized her variable annuity contract and has begun receiving payments. She decides she would rather start a withdrawal program, no longer annuitizing the contract. As her registered representative, you may inform her that: She may make this change without restriction Once annuitized, she may no longer make a change Once annuitized, she may change only the settlement option She is limitied to a 1035 exchange - Answer- Once a variable annuity has been annuitized, change...

CAIA Level 2 Exam Questions and Answers 100% Verified Meta risks are qualitative risks not captured by specific and measurable financial risks. events. - answerThey include organizational and human behavior, moral hazard, the misuse and excessive dependence on quantitative methods, market interaction, and extreme capital market A distressed securities strategy is most likely to earn returns from liquidity risk. - answerGlobal macro and equity long/short are most likely to earn returns fro...

FINC 3310 Leavell - All Possible Exams 1, 2, 3, & 4 - Final Exam Preparation The ______ is the financial market in which only short-term debt instruments are traded. money market ______ are agents of investors who match buyers with sellers of securities. Brokers The _____ interest rate more accurately reflects the total cost of borrowing. real Bonds with relatively low risk of default are called _____. investment grade bonds Financial institutions exist to _____. lower transactions c...

CAIA Level 2 Exam Questions and Answers 100% Verified Meta risks are qualitative risks not captured by specific and measurable financial risks. events. - answerThey include organizational and human behavior, moral hazard, the misuse and excessive dependence on quantitative methods, market interaction, and extreme capital market A distressed securities strategy is most likely to earn returns from liquidity risk. - answerGlobal macro and equity long/short are most likely to earn returns fro...

What stock is considered a hybrid - Answer preferred stock One thing common stock and preferred stock have in common is - Answer both have no maturity date Which type of security has voting rights - Answer common stock Debt covenants and restrictions help to ensure that - Answer management is meeting bond and shareholder expectations NOTE: covenants are promises meant to be kept What is true regarding bonds - Answer -when bond matures, bondholder gets lump sum back -coupon rate doesn't...

CAIA Level 2 Exam Questions and Answers 100% Verified Meta risks are qualitative risks not captured by specific and measurable financial risks. events. - answerThey include organizational and human behavior, moral hazard, the misuse and excessive dependence on quantitative methods, market interaction, and extreme capital market A distressed securities strategy is most likely to earn returns from liquidity risk. - answerGlobal macro and equity long/short are most likely to earn returns fro...

The SEC Securities & Exchange Commission requires public companies to do the following: a. File audited financial statements with SEC b. Change CEOs on a regular basis e. Regulates the Money Supply d. Prohibits foreign bribery a What does the Sarbanes-Oxley Act require companies to do? a. Have a board of directors b. Register all foreign sales c. Make estimated tax payments d. Have internal control audits d If a company produces and sells a product only in the U.S., what international developmen...

Characteristics of preferred stock includes - Answer-dividends in arrears -dividends are cumulative -higher payoff claim in a BK (has first dibs in a BK) -considered "hybrid" (part stock/part bond) -no fixed maturity date -no voting rights -can skip dividend payments -dividends don't change year-after-year -used in start ups (IPO) Preferred stock dividends - Answercan go without payment and pay in arrears the following year Characteristics of common stock are - Answer-voting rig...

What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? - International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what hypothesis - Efficient Market Hypothesis What is the basic type of negotiable debt? - Bonds What is the characteristic of a stock sold in the secondary markets? - Stocks sold in the secondary markets ar...