Question: Railroad companies in the United States tend to have long term
Railroad companies in the United States tend to have long-term, fixed rate, dollar denominated debt. Explain why.
Answer to relevant QuestionsWhen firms increase dividends, stock prices tend to increase. One reason given for this price reaction is that dividends operate as a positive signal. What is the increase in dividends signaling to markets? Will markets ...Stock buybacks really do not return cash to stockholders because only those who sell back stock receive the cash. Is this statement true or false? Explain. You are analyzing the dividend policy of Conrail, a major railroad, and you have collected the following information from the past five years. The average debt ratio during this period was 40%, and the total non-cash working ...The following table summarizes the results of regressing changes in firm value against changes in interest rates for six major footwear companies: Change in Firm Value = a + b(Change in Long − Term Interest Rates) a. How ...STL has asked you for advice on putting together the details of the new debt issues it is planning to make. What information would you need to obtain to provide this advice?
Post your question