Describe how a bond's rating is an assessment of risk. Describe interest rate fundamentals, the term structure
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Question:
- Describe how a bond's rating is an assessment of risk.
- Describe interest rate fundamentals, the term structure of interest rates and risk premiums.
- Differentiate between the features of common stock and preferred stock.
- Explain the Capital Asset Pricing Model (CAPM) and its relationship to the Security Market Line (SML).
- Explain the significance of the marginal cost of capital.
- Distinguish between the advantages and disadvantages of NPV and IRR.
- List the key elements in the capital budgeting process.
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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