What is a debenture? Why do you think that this is the most common form of corporate bond in the United States, but is much less commonly used elsewhere?
Answer to relevant QuestionsThe initial proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. In each case, the firm is in the 40 percent ...Managers of slow- growing, but profitable, firms (i. e., tobacco companies) should pay out these high earnings as dividends. What can they choose to do instead? Assume you are the sole owner of a profitable, private U. S. corporation. What do you think would be the most tax- efficient method of receiving owner-ship income (via salary, perks, retained earnings, or dividends)? Compare and contrast the constant payout ratio dividend policy and the constant nominal dividend payment policy. Which policy do most public companies actually follow? Why? Why do firms prepare cash budgets? How do (a) collection patterns and (b) payment patterns impact the cash budget?
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